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TMI Blog2020 (12) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... has failed to place any material evidence on record to show that the payment made by the assessee to the foreign firms was for the services rendered by them to the assessee outside India. It is pertinent to mention here that the revenue has not disputed the payments made by the assessee to the foreign firms.It is the case of the revenue that the assessee has failed to prove that the aforesaid expenditure was incurred by the assessee in connection with its business so as to entitle it to claim deduction under Section 37(1) of the Act. Substantial questions of law framed by this Court do not arise for consideration in this appeal. Therefore, it is not necessary for us to answer the same. - I.T.A. NO.230 OF 2014 - - - Dated:- 19-11-2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 143(1) of the Act and was subsequently taken up for scrutiny. During the course of the assessment, the assessee was called upon the explain as to why the gross sales commission paid to the foreign parties / non-residents to the extent of ₹ 39,94,627/- without deduction of TDS should not be disallowed and brought to tax. The Assessing Officer, by an order dated 16.12.2011, inter alia held that the assessee was afforded an opportunity to explain as to why gross commission paid without deduction of TDS should not be disallowed and be applied to tax. It was further noticed by the Assessing Officer that the assessee in response submitted that the tax need not be deducted at source against the payments made to foreign parties / non-resi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord any material to controvert the finding recorded by the Commissioner of Income Tax (Appeals) that the assessee has failed to establish that no material evidence are brought on record to show that the payments to the tune of ₹ 39,94,627/- were made to the foreign parties for the services rendered by them outside India. The appeal preferred by the assessee was therefore, dismissed. In the aforesaid factual background, this appeal has been filed. 4. Learned counsel for the assessee, while inviting our attention to the communication dated 07.12.2011 addressed to the Deputy Commissioner of Income Tax, submitted that certain documents were filed before the Assessing Officer in support of the fact that the payments were made to the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terial to controvert the finding of the learned CIT (Appeals) that the assessee has failed to establish with any material evidence brought on record, that the payments amounting to ₹ 39,94,627 made to these two foreign parties were for services rendered by them to the assessee outside India. In this view of the matter, we concur with and uphold the conclusion of the learned CIT (appeals) that since it is not established that the aforesaid payments were made for the services rendered by the two foreign parties to the assessee outside India, these payments cannot be allowed as a deduction 7. Thus, both the aforesaid Courts have concurrently held that the assessee has failed to place any material evidence on record to show that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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