2014 (4) TMI 1051 - ITAT LUCKNOW - Income Tax

Head Note / Extract:
Disallowance u/s 80IB - deduction of TDS on payments of commission to foreign residents - Held that:- CIT(A) has adjudicated the issue by holding that appellant was not required to deduct TDS u/s 195 of the Act in respect of commission paid to foreign agents. The CIT(A) has also taken note of the fact that in the immediately preceding year i.e. assessment year 2008-09, the similar view was taken by CIT(A), which was later on approved by the Tribunal. Deletion of addition of ₹ 2,00,000/- made by the Assessing Officer having considered the gross profit rate declared by the assessee at lower side. The Assessing Officer has made a test check of the books of account of the assessee and without pointing out any fault therein, the ad hoc addition was made. The CIT(A) has deleted the addition having relied upon the case laws referred to by the assessee on the ground that no additions are possible on conjectures and surmises. - Since the addition was made on ad hoc basis without pointing out any fault in the maintenance of books of account, the addition is not called for - Decided against Revenue.