TMI Blog2014 (1) TMI 1863X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO had not been able to establish that there was specific intention of the payee to receive the payment within the territory of India, therefore, the CIT(A) rightly did not agree with the view taken by the AO with regard to the addition made on this issue and the CIT(A) was justified in directing the assessing officer to delete the said addition. CIT(A) on this issue was not to be interfered with and, accordingly, the same was to be upheld. - Decided in favour of the assessee Also in AY 2008-09, when the revenue came in appeal to Tribunal on similar grounds in assessee's own case, the coordinate bench dismissed the appeal of the revenue following its decision in the case of M/S. DIVI S LABORATORIES LTD., HYDERABAD. [ 2011 (3) TMI 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons: a) Disallowance of payment made to LIC India towards gratuity fund amounting to ₹ 7,35,267/-. b) Disallowance of commission payment u/s 40(a)(i) amounting to ₹ 47,00,829/-. 3. On appeal, the CIT(A) deleted the said additions made by the Assessing Officer following his order in assessee's case for AY 2006-07, which was upheld by the Tribunal relying on its decision in the case of DCIT Vs. Divi's Laboratories Ltd., 131 ITD 271(Hyd.). 4. Revenue is in appeal before us against the action of the CIT(A) in deleting the disallowance of commission payment u/s 40(a)(i) amounting to ₹ 47,00,829/- made by the Assessing Officer. 5. We have heard the arguments of both the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g or arising in India, by virtue of connection with the property in India, control and management vested in India, which were not satisfied in the instant cases. Under these circumstances, withdrawal of earlier circulars issued by the CBDT had no assistance to the department, in any way in disallowing such expenditure. It appeared that an overseas agent of Indian exporter operated in his own country and no part of his income arises in India and his commission is usually remitted directly to him by way of TT or posting of cheques/demand drafts in India and, therefore, the same is not received by him on his behalf cases. Under these circumstances, withdrawal of earlier circulars issued by the CBDT had no assistance to the department in any wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendered outside India becomes allowable expenditure and the same is outside rigors of section 40(a)(ia). In the instant case, the CIT(A) observed that the assessing officer had not been able to establish that there was specific intention of the payee to receive the payment within the territory of India, therefore, the CIT(A) rightly did not agree with the view taken by the assessing officer with regard to the addition made on this issue and the CIT(A) was justified in directing the assessing officer to delete the said addition. After considering the totality of facts and the circumstances of the case the order of the CIT(A) on this issue was not to be interfered with and, accordingly, the same was to be upheld. 5. R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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