IN THE HIGH COURT OF DELHI AT NEW DELHI
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ITA 1258/2011
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CIT ..... Appellant
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Through Mr. Sanjeev Sabharwal, sr. standing counsel
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versus
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INTERWORLD CARGO CARE PVT LTD ..... Respondent
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Through
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CORAM:
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HON'BLE MR. JUSTICE SANJIV KHANNA
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HON'BLE MR. JUSTICE R.V.EASWAR
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O R D E R
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16.12.2011
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In this appeal filed by the Revenue, which pertains to assessment
year 2007-08 in the case of Interworld Cargo Care Pvt. Ltd., the
following questions of law have been raised :
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a. Whether learned Income Tax Appellate Tribunal erred in deleting the
addition of Rs.37,16,441/- on account of commission paid without
appreciating that it is not a genuine payment?
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b. Whether the Income Tax Appellate Tribunal was correct in law in
deleting the addition of Rs.1,80,000/- made on account of salary paid
without appreciating that it is not a genuine payment?
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c. Whether the order of the learned Income Tax Appellate Tribunal is
perverse on both the accounts as it has not considered the relevant
material on record?
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2. The additions, mentioned in question a and b above, made by the
Assessing Officer were deleted by the CIT(Appeals) and the said order has
been affirmed by the tribunal in their order dated 10th June, 2011.
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3. As far as payment of commission is concerned the tribunal has
recorded the factual matrix of the case. It is noticed that the assessee
has been regularly paying commission for procurement of business of air
cargo bookings and this is usual and normal practice in the said trade.
It has been recorded that similar percentage of commission has been paid
in earlier years and no addition in the said years has been made. The
finding of the Assessing Officer that the percentage of commission had
gone up, has been found to be factually incorrect. It is further noticed
that commission or discount was paid to 177 persons but addition has been
made by the Assessing Officer in respect of 19 parties to whom
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Rs.37,16,441/- was paid. The assessee had deducted TDS while making said payments. Name, addresses of the said 19 parties along with the PAN
numbers were furnished. The Assessing Officer did not conduct any
further enquiry and did not issue summons or ask the respondent-assessee
to produce the said person for verification and investigation. Once the
stand of the respondent-assessee that commission/discounts were normal
commercial practice in the trade in question is accepted and full details
are furnished about the identity of the recipients with proof of payment,
TDS certificates, etc., the Assessing Officer was not justified in making
additions without any material and basis to doubt the claim.
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4. We do not find that the order passed by the tribunal on question
No.a is perverse.
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5. With regard to the payment of Rs.1,80,000/- to Deepika Kapoor, the
tribunal has specifically recorded that she was an employee and had
remained on maternity leave for the months of August and September. Form
No.16 along with the income tax return filed by her were produced. Last
year also she was paid commission. We do not think the order passed by
the tribunal on the said aspect can be categorized as perverse.
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6. No substantial question of law arises. The appeal is dismissed.
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SANJIV KHANNA,J
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R.V.EASWAR, J
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DECEMBER 16, 2011/vld
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28
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$
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