TMI Blog2017 (5) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... : HONOURABLE MR.JUSTICE M.R. SHAH) [1.0] As common question of law and facts arise in both these Tax Appeals and as such arising out of the impugned common judgment and order passed by the learned Income Tax Appellate Tribunal and with respect to the same respondent assessee but for different Assessment Years, both these Tax Appeals are decided and disposed of by this common judgment and order. [2.0] Feeling aggrieved and dissatisfied with the impugned common judgment and order passed by the learned Income Tax Appellate Tribunal, Ahmedabad I Bench (hereinafter referred to as the learned tribunal ) in ITA Nos.1708/Ahd/2012 ITA No.178/Ahd/2016 for the Assessment Years 2009-10 and 2012-13 by which the learned tribunal has dismissed the said Appeals preferred by the revenue and has confirmed the order /orders passed by the learned CIT(A) deleting the additions made by the Assessing Officer made on account of disallowance of the claim of the respondent assessee with respect to the commission paid to the foreign agents, revenue has preferred the present Tax Appeals with the following proposed questions of law TAX APPEAL No.264/2017 (A) Whether on the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondent assessee for the Assessment Year 2012-13 for an amount of ₹ 84,24,214/-. The Assessing Officer doubted the genuineness of the claim of the respondent assessee and the commission paid to the foreign agents. The respondent assessee was asked to furnish the details of the service rendered to the foreign agents. However, the respondent assessee furnished the confirmation letters and pointed out that the commission was paid to seven foreign agents through banking channel. It was also submitted that during the previous year the respondent assessee engaged several commission agents, who procured business of the respondent assessee by booking orders for the respondent assessee. It was submitted that with respect to the very commission paid to the foreign agents, in the earlier orders the Assessing Officer accepted the claim of the respondent assessee under Section 40(a)(ia) of the Income Tax Act. However, the Assessing Officer was not satisfied and disallowed the claim of the respondent assessee under Section 40(a)(ia) of the Income Tax Act mainly on the ground that the respondent assessee had not produced any evidence with respect to the services re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent assessee of commission paid to the foreign agents, and therefore, made the disallowance. However, considering the fact that the respondent assessee had produced the confirmation letters from the concerned foreign agents and had produced the orders /invoices on which the commission was paid to foreign agents and the commission was paid through banking channel and with respect to the very foreign agents in the earlier /previous years, the Assessing Officer accepted the claim of the respondent assessee with respect to the commission paid to those very foreign agents, by giving cogent reasons the learned CIT(A) as well as the learned tribunal have deleted the disallowance made by the Assessing Officer. Relevant observations by the learned CIT(A) in CIT(A)/VLS/349/11.12 in paragraph 5.3 reads as under; I have considered the facts of the case, material on record as well as the contentions of the appellant as well as the observation of the AO in the assessment order. There is no plausible reason to even doubt the genuineness of the commission paid to the seven foreign agents as the appellant has filed sufficient documentary evidences and expenditure on this front is inev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14. We have carefully perused the orders of the authorities below and have also gone through the assessment orders brought to our notice, the payment of commission to the foreign agents in various years can be understood by the following chart:- Name of the parties Commission Details F.Y. 2005-06 2006-07 2007-08 2008-09 A.Y 2006-07 2007-08 2008-09 2009-10 KHS Synchemica Corporation - - - 1,04,066 PT NARDA TITA, JAKARTA 1,12,962/- 75,351/- 58,018 56,676 Woo-shin Medics Co. Korea 5,33,920 6,63,507 7,78,549 5,50,798 Selectchemie Imp. Exp. Zurich ..... X X X X Extracts X X X X X X X X Extracts X X X X
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