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TMI Blog2015 (12) TMI 1171X X X X Extracts X X X X X X X X Extracts X X X X ..... eather and leather garments. Without purchasing the leather, it cannot manufacture leather garments. When the purchase is not doubted, this Tribunal is of the considered opinion that there is no reason to doubt the payment. In those circumstances, in view of the smallness of the amount of ₹ 2,00,292/-, this Tribunal is unable to uphold the orders of the lower authorities. Accordingly, the orders of the lower authorities are set aside and the addition is deleted. - Decided in favour of assessee TDS u/s 195 - Disallowance of commission paid to foreign agents - non deduction of TDS - Held that:- Admittedly, the assessee is engaged in manufacturing leather and leather garments. In order to market its product in foreign countries, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charges paid by the assessee, for non-deduction of tax. The Ld.counsel submitted that he was instructed not to press this ground before this Tribunal. The Ld.counsel has also made an endorsement to this effect in the appeal folder. 3. Dr. B. Nischal, the Ld. Departmental Representative, submitted that he has no objection to dismiss the ground with regard to disallowance of ₹ 5,99,266/- as not pressed. 4. In view of the above, the ground of appeal raised by the assessee with regard to disallowance of ₹ 5,99,266/- is rejected as not pressed and the addition made by the lower authority is confirmed. 5. The next ground of appeal is with regard to disallowance of ₹ 2,00,292/- towards purchase of leather. 6. Shri T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed before the Assessing Officer that they could not contact the party concerned, therefore, the confirmation letter could not be filed. In the absence of any other material, according to the Ld. D.R., the Assessing Officer disallowed the claim of the assessee, which was rightly confirmed by the CIT(Appeals). 8. We have considered the rival submissions on either side and perused the relevant material on record. Admittedly, the assessee engaged in the business of manufacturing and export of leather and leather garments. The assessee claimed before the Assessing Officer that it purchased leather to the tune of ₹ 2,00,292/-. The assessee filed copies of the books of account for the period 01.04.2009 to 31.03.2010 and 01.04.2010 to 31.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Pvt. Ltd. (2014) 367 ITR 155. 11. On the contrary, Dr. B. Nischal, the Ld. Departmental Representative, submitted that the assessee admittedly paid commission to foreign agents. According to the Ld. D.R., the assessee is depending upon the agents outside India in order to conduct its business. The service of the agents is required for managing the affairs of the assessee smoothly outside India. According to the Ld. D.R., the foreign agents are providing managerial services to market the product in foreign countries. Therefore, the commission paid by the assessee has to be construed as fee for technical services. Hence, the assessee is liable to deduct tax under the provisions of Income-tax Act. Therefore, the CIT(Appeals) has rightly c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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