Commission paid to related parties is an allowable expenditure:

AO made an addition in respect of commission paid by assessee to related parties. The said addition was deleted by CIT(A) and Hon’ble ITAT by observing that the parties had sent confirmation of having received the commission directly to AO, complete details of month-wise commissions were filed and tax was deducted whenever TDS provisions were applicable. On Revenue’s appeal, the Hon’ble High Court also found that payment of commission was genuine and proper. Hence, Revenue’s appeal was dismissed.

[NAVAL TECHNOPLAST INDUSTRIES LTD. - TAX APPEAL NO.1416 of 2011 - GHC]