ITAT Upholds Disallowance of Sales Commission for failure to demonstrate Agent’s Role

Maini Construction Equipments Pvt Ltd Vs DCIT (ITAT Delhi) Introduction: In a recent case, the Income Tax Appellate Tribunal (ITAT) Delhi upheld the disallowance of ‘commission on sales’ claimed by Maini Construction Equipments Pvt Ltd. The disallowance was made due to the failure of the assessee to provide sufficient evidence to demonstrate the actual role played by commission agents in procuring sales. This article provides a detailed analysis of the case and the ITAT’s decision. Background of the Case: Maini Construction Equipments Pvt Ltd, the assessee, was engaged in th...