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TMI Blog2024 (5) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee, who has diverted its interest bearing funds to its sister concern for non-business purposes - HELD THAT:- All the above said issues were not clarified by the assessee by making proper representation and failed to utilize the several opportunities granted to the assessee. We are of the view also that the issue raised by the Revenue needs to be verified afresh and adjudicated accordingly. The issues raised by the Revenue apparently shows that the assessee has not justified in bringing on record the services rendered by the agents and how the percentage of payment of commission justified in this case. With regard to interest bearing fund, the Ld. CIT(A) has observed that the assessee has enough interest free the funds, however, it has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... technical services? 3. Whether in the facts and circumstances of the case, the Ld. CIT(A) has erred in allowing the appeal of the assessee by deleting disallowance of legal professional charges expenses amounting to Rs. 36,31,214/- when the services were emanated from India only and thus liable for deduction of tax in India only? 4 Whether in the facts and circumstances of the case, the Ld. CIT(A) has erred in allowing the appeal of the assessee by deleting disallowance of interest amounting to Rs. 33,24,072/ when the assessee failed to prove the business purpose of loans/advances given to sister concerns? 5. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing? ITA No.7113/Del/2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the earlier order sheet, we noticed that on 28/06/2021, Mr. Ashok Krajan has appeared on behalf of the assessee. From the next date of hearing i.e. 18/08/2021, none appeared for the assessee. Fifteen occasions, the case was posted for hearing and in all the above said date of hearing, none appeared for the assessee or no request for adjournment was filed. 4. Considering the above facts on record, we proceeded to hear the case with the assistance of Ld. DR. The Ld. DR brought to our notice the brief facts of the case are, the assessee has filed its return of income for the Asst. Year 2011-12 on 29/09/2011 declaring income of Rs. 17,55,95,534/-. The case was selected for scrutiny. Notices u/s 143(2) and 143(1) were issues and served on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, the Assessing Officer observed that it becomes clear that M/s Synergy Petro Products Pvt. Ltd. had no presence in the Republic of Benin and no services were provided by above said company. 6. Similarly, he verified commission payment to M/s Blesba Trade FZE and M/s Society Amar Consulting. After analyzing the facts on record, he came to the conclusion that commission expenses in respect of foreign commission agents for the export sales are not allowable, therefore, he disallowed and added to the income of the assessee. Accordingly, he has disallowed the total commission expenses claimed by the assessee. 7. Further, he disallowed Legal Profession Charges paid to following parties: (i) AIC Conseils (ii) Business Links Consulting Tianjin ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure and not falling under Sec.195 of the Act. Further, he allowed the claim of the assessee on the legal and professional charges based on the evidences submitted by the assessee. 10. With regard to disallowance of interest expenditure, Ld. CIT(A) allowed the interest paid with the observation that assessee has sufficient interest free funds in form of capital and unsecured interest free advances are available with the assessee concern. 11. With regard to other disallowances also, the Ld. CIT(A) has allowed the claim of the assessee. 12. Aggrieved with the above order, the Revenue is in appeal before us by raising several grounds of appeal as listed above in para-2. 13. After careful consideration of the facts of record, we observed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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