Disallowance of commission to related parties

Facts:

Assessee claimed of having paid commission after deducting TDS to related parties which was disallowed by lower authorities citing no services were availed or manifested by the assessee. On appeal assessee's plea was that the said commission was being paid for past many years and assessee also produced commission agency agreements as well. Revenue's stand was that the assessee could not manifest what services were taken for the commission that was paid and in the earlier years the commission itself was not questioned in the tax assessments.

Held against the assessee that the principle of res judicata is not applicable to tax assessments. Since the assessee could not manifest what services were availed for the commission the disallowance was upheld.

Case: Mangalya Ceramics v. DCIT 2023 TaxPub(DT) 1849 (Ahd-Trib)