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TMI Blog2014 (6) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... t, there is no finding at all by the tax authorities that the third party had rendered any services and the commission paid to the third party was diverted to the Government of Iraq – Following NSIL EXPORTS LTD. [2014 (6) TMI 496 - ITAT MUMBAI] – thus, the disallowance made by the AO is not in accordance with law – Decided partly in favour of Assessee. - ITA No. 2981, 2982 & 2983/Mum/2012 - - - Dated:- 11-6-2014 - D Manmohan And Rajendra, JJ. For the Appellant : Shri Nishit Gandhi For the Respondent : Mrs Parminder ORDER:- PER : D Manmohan These three appeals are filed at the instance of the assessee firm and they are directed against the orders passed by the CIT(A)-31, Mumbai. 2. Though several grounds were ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through agency of Reserve Bank of India, which in turn approved for release of funds after proper verification. During the assessment proceedings as well as in the remand proceedings the assessee claimed to have furnished the following documents: - (a) Copies of the contract with Iraq Government for supply of medical machineries. (b) Approval of the United Nation Security Council for the said contract. (c) Details of sales made. (d) Details of commission paid on export to Iraq and to other countries. (e) Copies of the debit notes raised by the Commission Agents and the documentary evidence showing proof of remittance to the said agents as well factum of services rendered. (f) As per the contract the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0% of the commission paid by the assessee has to be disallowed, which was confirmed by the learned CIT(A). 7. Before us the learned counsel for the assessee filed brief written submissions and a copy of the order of the Tribunal in the case of NSIL Exports Ltd. (Mum. Tribunal) to submit that on identical circumstances similar payments were allowed as deduction by holding that they are not hit by Explanation to section 37(1) of the Act. It was also contended that the AO did not make any enquiry except mechanically making a reference to the communication received from the CBDT and overlooking the fact that the assessee had not imported oil at all and therefore there was no question of paying any illicit surcharge on every barrel of oil imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the Government of Iraq whereas in the instant case there is no finding at all by the tax authorities that the third party had rendered any services and the commission paid to the third party was diverted to the Government of Iraq. Under these circumstances we are of the view that the issue stands squarely covered by the decision of the Tribunal cited supra and hence we hold that the disallowance made by the AO is not in accordance with law. We direct the AO accordingly. Since the addition made by the AO is deleted, the assessee has not pressed the grounds concerning validity of reopening of assessment. Therefore the other grounds are not adjudicated upon. 10. In the result, the appeals filed by the assessee are treated as partly allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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