9911796707
TMI Blog2018 (11) TMI 384X X X X Extracts X X X X X X X X Extracts X X X X ..... ee company is engaged in manufacturing and wholesale trading of cotton yarn and fabric. For the impugned assessment year the assessee filed its return of income on 30th November 2013, declaring nil income and claiming carry forward of loss of Rs. 26,35,134. During the assessment proceedings, the Assessing Officer noticed that the assessee has claimed deduction of Rs. 27,13,195, on account commission paid to overseas agents. To verify the genuineness of the commission payment, the Assessing Officer called upon the assessee to furnish the supporting details. After verifying the details furnished by the assessee along with the explanation in support of the claim, the Assessing Officer was of the view that the assessee could not prove the exact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made to Pramptex Agarwal Inc., Peru, is also under similar terms and condition. The learned Authorised Representative submitted, while deciding identical issue in assessee's own case for assessment year 2009-10 and 2011-12, in ITA no. 4222/Mum./2016 and ITA no. 4221/Mum./2016, dated 18th June 2018, the Tribunal has deleted the disallowance made by the Assessing Officer. Thus, he submitted, the aforesaid decision of the Tribunal squarely applies to the facts of the present case. 6. The learned Departmental Representative relied upon the observations of the learned Commissioner (Appeals) and the Assessing Officer. 7. I have considered rival submissions and perused materials on record. It is the case of the assessee that as per the terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26,926/- referred above. 8. We shall now take up the appeal filed for AY 2011-12. The first issue urged therein relates to the disallowance of commission expenses. During the year relevant to AY 2011-12, the assessee paid Commission to Israel parties and also certain other parties. The AO disallowed a sum of Rs. 23.34 lakhs for non-deduction of tax at source. The Ld CIT(A) confirmed the same by following the decision rendered by him in AY 2009-10. 9. In the preceding paragraphs, we have deleted the disallowance of commission expenses on the reasoning that the assessee has realised only net amount and further the impugned payments are not liable for deduction of tax at source, since the same is not taxable in India in the hands of recipien ..... X X X X Extracts X X X X X X X X Extracts X X X X
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