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TMI Blog2013 (5) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... commission, therefore provisions of section 194H are not applicable. In favour of assessee. Disallowance u/s 14A - CIT (A) deleted the addition - Held that:- Assessee fairly agreed that Rule 8D is applicable for the concerned assessment year. However, he submitted that under Rule 8D the disallowance will be of Rs. 2500/- interest of justice will be served if the matter is remitted to the file of the AO to apply Rule 8D in this case. In favour of revenue statistical purposes. Advertisement expense incurred on purchase of gold items - disallowance as non furnish of satisfactory documentary evidence as it was for wholly and exclusively for business purpose - CIT (A) deleted the addition - Held that:- As assessee has submitted additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers for promotion of goods and fail to deduct and collect any tax at source on this cash discount in contravention to the provisions of section 40A(ia) of the I.T. Act, 1961. ii) On the facts and in the circumstances of the case the Ld. Commissioner of Income Tax (A) has erred in law and in facts in deleting the addition of Rs. 50,000/-, which was made by the Assessing Officer under the provision of section 14A of the I.T. Act. iii) The Ld. Commissioner of Income Tax (A) has erred in law and in facts in deleting the addition of Rs. 17,86,788/- made by Assessing Officer on account of disallowance of advertisement expense as these were incurred on purchase of gold items and the assessee could not furnish satisfactory documentary evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard the rival contentions in light of the material produced and precedent relied upon. It transpires that the issue is squarely covered in favour of the assessee by the ITAT decision in assessee's own case in I.T.A. No. 2740/Del/2011 vide order dated 19.8.2011. In this Order, the Tribunal has held as under:- "7. We have heard both the sides on the issue and after hearing both the sides, we find that the assessee was selling the goods to its dealers/ sub-dealers at arm's length. These dealers/ sub-dealers were not acting on behalf of the assessee. The goods were sold to these dealers / sub-dealers on principal to principal basis. These was no agency relationship with them. Further these dealers/ sub-dealers have not given any service in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee's appeal Ld. Commissioner of Income Tax (A) noted that Assessing Officer has made the disallowance on adhoc basis and he has not given any reason for the same. Accordingly, he deleted the addition. 10. Against the above order the Revenue is in appeal before us. 11. We have heard the rival contentions in light of the material produced. Ld. Counsel of the assessee fairly agreed that Rule 8D is applicable for the concernment assessment year. However, he submitted that under Rule 8D the disallowance will be of Rs. 2500/-. We have carefully considered the submissions and perused the records. We find that interest of justice will be served if the matter is remitted to the file of the Assessing Officer to apply Rule 8D in this case. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duced. We find that assessee has submitted additional evidence before the Ld. Commissioner of Income Tax (A) in this regard. The additions pertained to the confirmation of the dealers regarding having receipts of gold coins. Ld. Commissioner of Income Tax (A) has obtained remand report from the Assessing Officer. The Assessing Officer has not given any adverse comments in this regard. Under the circumstances, in our considered opinion, there is no infirmity in the order of the Ld. Commissioner of Income Tax (A). Accordingly, we uphold the same. 16. Apropos issue of Disallowance Directors' Remuneration On this issue Assessing Officer noted that during the year Directors' remuneration has increased to Rs. 45,67,512/- from Rs. 30,00,000/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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