2013 (7) TMI 697 - GUJARAT HIGH COURT

Disallowance u/s 37 - Services rendered by the commission agents - Tribunal deleted the disallowance - Held that:- entire issue hinges on appreciation of material on record. The Commissioner as well as the Tribunal concurrently held that there was sufficient evidence on record of the assessee having paid commission to the agents who had rendered service as per the agreements. Such payments were made through cheques and were found to be genuine. Commission agents in no way related to the assessee company and the payments were duly reflected in their income returns - Decided against Revenue.

Disallowance u/s 14A - Investment in subsidiaries and administrative expenses - Held that:- Tribunal has bifurcated the expenditure in two parts first related to investment of Rs. 5907.18 lakhs in foreign subsidiaries, it was held that the dividend income from such subsidiaries is taxable in India and that therefore, Section 14A would have no applicability. The remaining amount pertain to investment of Rs. 38 Crores [rounded off] made in Indian subsidiaries. In this respect, the Tribunal noted that the assessee had to its disposal, own interest free funds many times over the investment in question. As per the balance sheet as on 31st March 2005, the assessee had interest free fund of Rs. 929.57 Crores - Decided against Revenue.

Deduction u/s 80IB - Tribunal granted deduction - Held that:- Following decision of Nirma Industries Limited v. Deputy Commissioner of Income-Tax [2006 (2) TMI 92 - GUJARAT High Court] - Decided against Revenue.