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TMI Blog2014 (7) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... ue contended that CIT(A) has deleted the disallowance by considering certain new evidences and they were not confronted to the AO resulting in violation of Rule 46A of IT Rules – thus, the order of the CIT(A) is set aside and the matter is remitted back to the AO for fresh adjudication. Foreign travelling expenses – Held that:- Assessee was specifically asked as to whether the assessee could substantiate claim relating to Shoe fairs that were claimed to have been held in foreign countries and the participation by the assessee by bringing on record any type of correspondences, brouchers, invitation etc. - the assessee could furnish the relevant details, if an opportunity is given - the assessee is vehemently contending that the foreign t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngaged in the business of manufacturing, trading and export of shoes and also carrying other allied activities. The additions made by the AO in respect of commission expenses, claim for damaged goods were fully deleted by learned CIT(A). The additions made by the AO in respect of foreign travelling expenses was partly allowed by the learned CIT(A). Hence, the Revenue is in appeal and the assessee is in cross objection before us challenging the decision of learned CIT(A) in respect of the matters decided against each of them. 5. The first issue relates to disallowance of commission expenses claimed by the assessee, which was disallowed by the AO on the following two grounds:- (a) the assessee did not furnish any proof of services r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were withdrawn by another Circular No.7 of 2009, dated 22.10.2009, the learned CIT(A) took the view that the Circular No.7 of 2009 shall have prospective effect only and the old circulars shall apply for the year under consideration. 7. The Learned D.R contended that the learned CIT(A) has violated the provisions of Rule 46A of the I.T. Rules in admitting the additional evidences without confronting the same with the Assessing Officer. He submitted that the assessee has failed to prove that the recipients of commission did render any service to the assessee. In respect of requirement of deduction of tax at source, the Ld D.R placed reliance on the assessment order. 8. With regard to the observation of the AO that the assessee did not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tween M/s Trading Post and assessee herein and submitted that the payment was made to M/s Trading Post in connection with the services rendered by it and it was a non-resident. The Ld A.R submitted that the recipients of commission amount have procured orders for the assessee and to prove the same, certain additional evidences are included in the paper book. Accordingly he submitted that the assessee has paid the commission amount only to foreign agents for the services rendered outside India. 11. In the rejoinder, the Learned D.R submitted that all these additional evidences need to be examined at the end of the Assessing Officer and accordingly prayed that matter may be set aside to the Assessing Officer for examining the same afresh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign travel expenses of ₹ 33,91,814/- as deduction. The AO asked the assessee to justify the said claim by furnishing necessary details and documents. Though the assessee submitted that the partners of the assessee firm has undertaken travel to Italy Germany to attend and participate in Shoe Fairs, yet the assessee failed to furnish necessary details trip wise, person wise, places visited, purpose of visit and business procured, if any etc. Hence, the AO disallowed the entire amount of ₹ 33,91,814/-. 16. The Ld CIT(A) examined the details that were furnished by the assessee to the AO and noticed that not only the partners of the assessee firm, but also the family members have undertaken travel. He also noticed that partn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vel of Ms. Priya was only ₹ 1,74,311/-. He further submitted that the assessee has been incurring expenses on the travel of Ms. Priya in the subsequent years also. He submitted that the assessing officer has examined the expenses incurred on the travel of Ms. Priya in assessment year 2011-12 and was satisfied that it was incurred for business purposes. Accordingly he submitted that the entire claim of traveling expenses should be allowed. 19. We have heard the rival submissions and carefully perused the record. During the course of hearing, the Ld A.R was specifically asked as to whether the assessee could substantiate claim relating to Shoe fairs that were claimed to have been held in foreign countries and the participation by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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