SANJEEV PRAKASH SHARMA,J. - (1.) The assessee's complaint in appeal under Section 260A of the Income Tax Act, is that the disallowance to the tune of Rs.97,98,305/- is unsupportable, as it was made entirely on an arbitrary basis without rationale.
(2.) The assessee, inter alia, carries on business in pipes and sanitary wares and other fittings used in the construction of buildings. The company is also engaged in trading of irrigation pipes and fittings. In the Assessment Year (AY) 2013-14, the assessee declared its total income as Rs.46,08,958/-. The AO who carried scrutiny under Section 143(c), assessed the income as Rs.1,43,79,630/- and disallowed commission expenditure to the tune of Rs.97,98,305/-. The assessee's appeal was rejected by the CIT(A). It approached the ITAT, unsuccessfully.
(3.) Learned counsel for the assessee points out that in all the previous years, especially in the last three years, similar commission expenditure was claimed and though the disallowance was made, it was only marginal. Learned counsel submits that the rationale for disallowance of 100% in respect of the commission paid to ten parties, was entirely arbitrary, since all the relevant documents, such as ITR, amount paid as well as the documentary evidence pertaining to each party were made available.;