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2012 (12) TMI 56 - GUJARAT HIGH COURTDisallowance on account of payment made to the Foreign Agent – Held that:- Confirmation letter from M/s. Vistar Trading LLC from the foreign country confirming the nature of business and the amount of commission received by it for the sale of goods to three parties directly from the buyers - letter also reflected that the foreign agents did not have any sister concern in India - abundant material concerning the identity of agent and genuineness of the transactions as well as services rendered as also with regard to the amount received by it - disallowance deleted Disallowance of claim of export commission – Held that:- Gross export proceeds never reached the assessee, no such income had therefore accrued to the assessee and this was because of an obligation or compulsion to deduct the commission from the export invoices which clearly showed this to be a case of diversion of income by overriding title - amounts deducted from the export invoices were thus clearly allowable as deduction – disallowance deleted – In favor of assessee
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