PAWAN KUMAR JAIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The Appellant, herein, is a proprietor of M/s Pawan Jain & Sons and is engaged in the business of manufacture of stainless steel utensils and trading and export of stainless steel utensils, rice items.

(2.) This case pertains to the asst. yr. 2006-07, for which year, the Appellant has filed return of income declaring total income of Rs. 99,00,454. The AO in assessment proceedings noticed that the Assessee had paid commission of Rs. 31,25,312 to one M/s Laxcon Steels (P) Ltd., purportedly, in consideration for the said company standing guarantee for purchases from certain firms/companies.

(3.) The AO was of the view that this transaction was not genuine and, therefore, it had allowed the aforesaid commission and shown the income at Rs. 1,30,25,766. The Assessee preferred an appeal there against before the CIT(A) who also confirmed the findings of the AO.