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Judgment
This assessee’s appeal for Assessment Year 2020-21 arises against the C IT(A)/NFAC, De lhi’ s DIN & order No. ITBA/NFAC/S/250/2025-26/1084059473(1) dated 24.12.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in shor t “the Act”).
Heard both the p arties at length. Case file perused.
Learned counsel submits very fairly at the outset that the assessee/appellant confines her challenge only to the twin disallowances/additions of insurance commission herein amounting to Rs.19,17,088/- and rent expenditure of Rs.3 ,20,000/-; respectively, made in assessment order dated 19.09.2022 as upheld in the lower appellate discussion.
That being the case, the Revenue could hardly dispute first of all that this assessee is an insurance agent w ho receives her commission income from various insurance companies. The said income is admittedly assessable under the income from business or profession only than that u/s 56 of the Act i.e. residuar y head of “other” sour ces; and, therefore, this tribunal is of the co nsidered view that the impugned commission payments could not have been disallowed u/s 57 of the Act for this precise reason. The outcome of the assessee’s latter issue of rent payment expenditure could be hard ly any differe nt once she has pleaded and proved before both the learned lower authorities that the recipients herein happens to be the landlord who had issued his categorical instructions for payment to his wife owing to so me banking issues. This latter rent payment disallowance of Rs.3 ,20,000/- also stands deleted.
No other grounds or arg ument has been pressed.
This assessee’s appeal is allowed.