ITAT upholds 90% disallowance of Unsubstantiated commission expenses

Notional Chits & Loans Pvt. Ltd. Vs ITO (ITAT Cochin) The Income Tax Appellate Tribunal (ITAT) in Cochin has dismissed the appeal of Notional Chits & Loans Pvt. Ltd., upholding the disallowance of 90% of the company’s claimed commission expenses. The company, a chit fund business in Thrissur, had its income re-assessed at a significantly higher amount by the Assessing Officer (AO) after failing to provide satisfactory evidence for a commission payment of Rs. 45,16,845. The AO’s full disallowance was subsequently reduced by the Commissioner of Income-tax (Appeals) [CIT(A)] t...