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In the presentcasethere is a binding contract between the parities by which the recipients of the commission had the right to enforce realization of commission stipulated between the parties.From the communication between the parties foundthat the payment was duly received by the parties and paid by the assessee by account payee cheques. The revenue has not alleged that the parties to the transactions ale related to each other or that the payments are not genuine or that the payments having been made by the assessee to the recipients have found their way back to the assessee some way or the other. Such being thecase,the authorities below were not justified in rejecting the claim of the assessee for payment of commission.Since all the ingredients necessary for genuine business transaction exist in thiscasethe addition made by the AO and in the action of the Ld. CIT(A) in confirming the same do not find merit.

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Sec. 147 of Income Tax Act, 1961— Reassessment — There is a binding contract between the parities by which the recipients of the commission had the right to enforce realization of commission stipulated between the parties and it was also found from the communication between the parties that the payment was duly received by the parties and paid by the assessee by account payee cheques and the revenue has not alleged that the parties to the transactions are related to each other or that the payments are not genuine or that the payments having been made by the assessee to the recipients have found their way back to the assessee some way or the other, therefore, the authorities below were not justified in rejecting the claim of the assessee for payment of commission since all the ingredients necessary for genuine business transaction exist in this case and there was no merit in the addition made by the AO and in the action of the CIT(A) in confirming the same - - DHANDHIA GEMS V/s ITO - [2020] 27 ITCD Online 001 (ITAT-KOLKATA)