Commission disallowed on assessee's failure to prove actual rendition of services by recipient of sum

Where assessee in support of commission expenses, failed to prove that it had infact availed of certain services from recipients of commission, authorities below were justified in rejecting assessee's claim in respect of said expenses

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[2013] 40 taxmann.com 166 (Gujarat)

HIGH COURT OF GUJARAT

Gujarat Insecticides Ltd.

v.

Deputy Commissioner of Income-tax*

Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of [Commission] - In course of assessment, Assessing Officer rejected assessee's claim in respect of commission paid for availing of certain services -Tribunal upheld order of Assessing Officer finding that there was no evidence to suggest that any services were rendered by recipient of such commission - Tribunal also noted that onus was on assessee, claiming such deduction, to establish that such payments were made for services rendered - Whether finding recorded by Tribunal being a finding of fact, no substantial question of law arose therefrom - Held, yes [Para 3] [In favour of revenue]