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TMI Blog2014 (4) TMI 1051X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee at lower side. The Assessing Officer has made a test check of the books of account of the assessee and without pointing out any fault therein, the ad hoc addition was made. The CIT(A) has deleted the addition having relied upon the case laws referred to by the assessee on the ground that no additions are possible on conjectures and surmises. - Since the addition was made on ad hoc basis without pointing out any fault in the maintenance of books of account, the addition is not called for - Decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... income derived from industrial undertaking. Following the judgment of Hon'ble Apex Court in the case of Liberty India (supra) the CIT(A) has confirmed the disallowance. Since the issue has been adjudicated by the CIT(A) in the light of the judgment of Hon'ble Apex Court in the aforesaid case, we find no infirmity therein and confirm the order of CIT(A). I.T.A. No.697/Lkw/2013 4. This is an appeal of the Revenue in which the order of CIT(A) is assailed on various grounds which are as under: "1. That Ld. CIT(A) has erred in law & Facts in deleting the addition of ₹ 84,47,729/- made under section 40(a)(i) on account of payment made to Non-residents without TDS on export sales without appreciating the facts brought on rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record by the AO. 7. That the order of the Ld. CIT (A) being erroneous in law and on facts needs to be vacated and the order of the A. O. be restored. 8. That the appellant craves leave to add or amend any one or more of the ground of the appeal as stated above as and when need for doing so may arise." 5. Ground Nos. 1 to 4 relate to the deduction of TDS on payments of commission to foreign residents. During the course of hearing of the appeal, the learned counsel for the assessee invited our attention that this issue is squarely covered by the various orders of the Tribunal in which the effect of circular withdrawn by the CBDT was properly examined. Following these judgments the CIT(A) has adjudicated the issue by holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts the agents as his selling agent, designer & technical advisor for his products. He has further observed that being commission agent required managerial acumen & expertise and therefore, would be covered under Section 9(1)(vii) of the Act as managerial services. On perusal of the assessment order and assessment folder, I find that the A.O. has not brought anything on record which could demonstrate that these agents had been appointed as selling agents, designers & technical advisors. Rather on the contrary I find that the agreement is of for procuring orders and nothing else. In absence of any such evidence, this observation of the A.O. is mere conjecture and therefore, no cognizance of the same can be taken. It is a trite law that suspic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : 1. CIT v. Toshoku Ltd. [1980] 125 ITR 525 (SC) held - that when a non-resident, with no operation of business in India, rendered services outside India to an Indian concern, then the provisions of S. 9 are not attracted. 2. CIT v. Eon Technology (P.) Ltd. (Delhi, HC) (ITA No.1167 dated 8th March, 2011) - held, that - TDS u/s 195 on commission payable to non-resident is not to be deducted for the services rendered outside India. 3. Dy. CIT v. Ardeshi B. Cursetjee & Sons Ltd. [2008] 115 TTJ 916, ITAT, Mumbai, 2008. 4. TVS Motor Co. v. Asstt. CIT, ITAT, Chennai, ITA No.697 & 757/Mds/2009. On consideration of the decisions (supra) and the facts and circumstances of the case, the addition made by AO is misplaced, hence, the same is b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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