Case Law Details
Oripol Industries Ltd. Vs JCIT (Orissa High Court)
In the present case, all the persons to whom commission was paid were either Directors of the Company or their relatives. None of them is shown to have any expertise in procuring IOF from the Indian markets for enabling the Appellant to meet the purchase order placed on it for IOF. The amounts paid as commission were also not insubstantial. In the facts of the case, it cannot be said that the AO’s decision to disallow part of the payment towards commission was unreasonably arrived at. The test of commercial expediency was indeed applied. Even from the point of view of a businessman, it does appear to this Court that the commission amount which was disallowed by the AO cannot be said to be for the purpose of business of the Appellant.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
This appeal by the Assessee is directed against an order dated 26th April, 2017 passed by the Income Tax Appellate Tribunal (ITAT), Cuttack Bench, Cuttack in ITA No.511/CTK/2014 for the Assessment Year (AY) 2010-11.
2. While admitting this appeal on 11th March 2022, the following question was framed for consideration by this Court:
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