GURCHARANJEET SINGH Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) CM No. 14962/2006 (condonation of delay) For the reasons stated in the application, the delay is condoned. The application stands disposed of.

(2.) THE assessee runs a guest -house in Pahar Ganj, New Delhi. It appears that the assessee pays some commission to autorickshaw drivers and rickshaw -pullers who bring customers to the guest -house. According to the assessee the extent of commission paid was 34.93 per cent of the total rent received by the assessee from the guest -house business. The assessee claimed that Rs. 7,04,465 had been paid as commission in the year in question.

(3.) THE AO found that some sort of vouchers were prepared by the assessee. These only indicated the registration number of the autorickshaws and not the identity of the drivers to whom the commission was paid. On going through the evidence on record, the AO came to the conclusion that the commission claimed to have been paid by the assessee was very high. He estimated that it should be in the range of about 15 per cent of the rental income received by the assessee. Accordingly, the AO allowed a deduction towards payment of commission in the sum of Rs. 4,01,983.