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TMI Blog2019 (9) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... t also covers composite payments which has an element of income embedded or incorporated in that. The obligation to deduct tax at source is, however, limited to appropriate proportion of income chargeable under the Act forming part of gross sum of money payable to the non-residents. Tribunal has merely applied the decision of the Supreme Court to the facts of the present case. Under the circumstances, the proposed question does not give rise to any question of law. Disallowance u/s 14A - HELD THAT:- As in the case of Commissioner of Income-Tax v. Corrtech Energy P. Ltd. [ 2014 (3) TMI 856 - GUJARAT HIGH COURT] wherein the court has held that notice under sub-section (1) of section 14A provides that for the purpose of computing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing two questions stated to be substantial questions of law: - [A] Whether the Appellate Tribunal had erred in law and on facts in upholding the order of the CIT(A) deleting the addition of ₹ 3,47,81,265/- made on account of disallowance u/s. 40(a)(ia) of the Act for non deduction of tax on commission payable to foreign agents? [B] Whether the Appellate Tribunal had erred in law and on facts in upholding the order of the CIT(A) deleting the addition of ₹ 5,95,111/- made on account of disallowance u/s 14A of the Act? 2. Heard Mrs. Mauna M. Bhatt, learned senior standing counsel for the appellant. 3. Insofar as proposed Question 'A' is concerned, which relates to deletion of addition of ₹ 3,47,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrtech Energy P. Ltd. (2015) 372 ITR 97 (Guj) wherein the court has held that notice under sub-section (1) of section 14A provides that for the purpose of computing the total income under Chapter IV of the Act, no deduction shall be allowed in respect of the expenditure incurred by the assessee in relation to income which does not form part of the total income under the Act. The court recorded that in the facts of the said case, the Tribunal has recorded a finding of fact that the assessee did not make any claim for exemption of any income from payment of tax and it was on that basis that the Tribunal held that the disallowance under section 14A of the Act could not be made. The court agreed with the view adopted by the Tribunal and did not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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