Commission paid to related parties for services rendered by them is allowable expenditure

Question No.(i) pertains to addition of Rs.33.33 lakhs (rounded off) made by the Assessing Officer towards the commission paid to related parties. The Assessing Officer made such addition despite the assessee pointing out that the parties to whom such commissions were paid were associated with the associated company since its inception. The commission was paid for the services rendered by them for promoting sales. Such commission agents were assessed to income tax, TDS whenever required to be deducted had been deducted.

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