- (1.) This is an appeal under Section 260A of the Income Tax Act challenging the order passed by Income Tax Appellate Tribunal dated 20-7-2005. The assessment year is 2001-02. Following the two substantial questions of law has been pressed in this appeal : 1. Whether the ITAT was justified in deleting the addition of Rs. 7,55,428 made by the assessing officer towards commission paid to different whole-sellers that was purported to have been accounted for through credit-notes when not even a single party had actually been paid the said amount and the assessee had failed to establish conclusively that such payment during the year, was warranted by business/commercial expediency.
(2.) Whether the ITAT has erred in law and on facts in deleting the addition of Rs. 3,43,007 on account of addition of cash credits under Section 68, without appreciating that the assessee had failed to discharge its onus that these Sundry Creditors were genuine and they had the financial capacity to advance the indicated sum of money. 2. In regard to the commission to the tune of Rs. 7,55,428 paid by the assessee, which was disallowed by the assessing officer and that addition has been deleted by the Commissioner, Income-tax in appeal and this had been confirmed by the order of the Appellate Tribunal. The facts relevant are as follows: The assessee had launched a new scheme (Sona Chandi Uphar Yojna) on 26-1-2001 and it continued up to 15-3-2001. This scheme was applicable till 15-3-2001 but orders received under the scheme were materialized till 31-3-2001. The total liability worked out by the assessee under the scheme was Rs. 20,11,715. Out of this total liability Rs. 3,08,248 was cleared by the end of March, 2001 leaving an amount of Rs. 17,03,467 which was disbursed to different CNF agents after 31-3-2001.
(3.) The necessary documentary evidences were filed.;