9911796707
TMI Blog2019 (4) TMI 2138X X X X Extracts X X X X X X X X Extracts X X X X ..... realizable value. The decision relied upon by the AO is on the provision for warranty whereas in the present case the disallowance is for non-moving / obsolescence goods. The ld. AR contention that they are slow moving. The fact remains that the assessee could not substantiate and the CIT(A) has referred in the observations that the assessee could not substantiate with the detailed working of provisions and no details of listed items of obsolete have been produced and the basis of value and comparables at cost or market value and also there is no policy decision in respect of such non-moving / obsolescence goods. We are of the substantiate opinion that since both the AO and the assessee could not substantiate with the information and CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidering the provisions, facts and finding has taken a reasoned decision and we uphold the same and dismiss the ground of appeal of the assessee. - SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER For the Assessee : Shri B.R. Sudheendra, CA For the Revenue : Shri T.N. Prakash, Addl. CIT (DR) ORDER PER SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER The assessee has filed an appeal against the order of Commissioner of Income-tax (Appeals)-3, Bangalore passed u/s. 143(3) and 250 of IT Act. 2. The assessee has raised the following grounds of appeal. 1. The order passed by the learned CIT(A) to the extent prejudicial to the appellant is bad in law and liable to be quashed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt agents constitute 'fees for technical services' under section 9(1)(vii) of the Act. 6. The learned CIT(A), Bengaluru has erred in not appreciating that: a. the impugned expenditure was not incurred for providing technical services outside India; b. the non-resident agents, at no time during the relevant previous year, were engaged in providing technical services outside India; c. services of non resident agents were rendered outside India and hence the payment did not constitute 'Fees for technical services' under section 9(1)(vii)(b) d. payments to non-resident agents were made for procuring orders which cannot be regarded as managerial, technical or consultancy services. e. Even otherwise, without prej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence of Rs. 19,11,000/- and the explanations were called for. Whereas the assessee filed the letter dated 27.02.2013 and placed reliance on the judicial decision and Accounting standards. Whereas the Assessing Officer in respect of provision for non-moving / obsolescence goods dealt on the judicial decisions on provision for warranty and the jurisdictional High Court decisions. The ld. AO is of the opinion that the assessee could not provide reasons for provisions and disallowed the claim. 4. Similarly the Assessing Officer found that the assessee has entered into an agreement with the non-resident agents and has claimed the expenditure of export commission of Rs. 6,42,000/- and also no TDS was made. The Assessing Officer found that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition and granted relief in respect of other additions and partly allowed the appeal. Aggrieved by the order, the assessee has filed an appeal before the Tribunal. 6. Before us, the ld. AR submitted that the assessee has made provision for non-moving / obsolescence goods and submitted that these facts have been considered in lieu of the accounting policy and referred to the noes on accounts. The Assessing Officer has dealt on this issue in para 3.1. The contention of the ld. AR that the assessee is following the valuation of the goods at cost or net realized value and submitted the paper book. The assessee is also entitled to write off the non-moving / obsolescence goods in the books of accounts. Similarly in respect of disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods. We are of the substantiate opinion that since both the Assessing Officer and the assessee could not substantiate with the information and CIT(A) also dealt on this issue, we restore the disputed issue to the file of the Assessing Officer to verify and examine the method of accounting treatment of obsolescence goods and examine the statements filed in the course of hearing. We make it clear that assessee should cooperate in submitting the information for early disposal of the case. In the result, the grounds of appeal of the assessee is allowed for statistical purposes. 8. In respect of the second ground of appeal in respect of non-deduction of TDS on payments made to non-residents. The ld. AR submitted that the commission is paid ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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