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The Tax Publishers India Steel Corporation v. ITO [ITA Nos. 1750-1751/Kol/2014, dt. 22-4-2016] : 2016 TaxPub(DT) 2197 (Kol-Trib) Allowability of commission expense on overlapping basis without accounting of sale *Facts:* Assessee firm was in the business of selling electrical transformers and other electrical products. They were in the practice of booking of commission expense on the basis of the orders clinched by the agents and the said commission was paid after TDS through banking channels. The assessing officer cross checked the sale v. commission and disallowed the commission on which no sale was made in both assessment years. On appeal the Commissioner (Appeals) upheld the disallowance. On further appeal: Held in favour of the assessee that the commission expense was allowable and the overlap to sale had no strings attached to the claim of the same.

The Tax Publishers

India Steel Corporation v. ITO [ITA Nos. 1750-1751/Kol/2014, dt. 22-4-2016] : 2016 TaxPub(DT) 2197 (Kol-Trib)

Allowability of commission expense on overlapping basis without accounting of sale

Facts:

Assessee firm was in the business of selling electrical transformers and other electrical products. They were in the practice of booking of commission expense on the basis of the orders clinched by the agents and the said commission was paid after TDS through banking channels. The assessing officer cross checked the sale v. commission and disallowed the commission on which no sale was made in both assessment years. On appeal the Commissioner (Appeals) upheld the disallowance. On further appeal:

Held in favour of the assessee that the commission expense was allowable and the overlap to sale had no strings attached to the claim of the same.