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2015 (11) TMI 174 - AT - Income TaxTransfer pricing adjustment - DRP determining Arm’s Length Price of Sales Commission transaction of the appellant at Rs. Nil - Held that:- We are of the opinion that in the present case, the TPO has gone beyond his jurisdiction in questioning necessity to pay sales commission and in determining the value of commission paid as NIL. The assessee has placed on record the agreement according to which the commission is paid. The financial records of the assessee company to show that there has been increase in the export sales since the time the assessee has engaged the services of AE. The Revenue has not disputed the financial results and the figure of export sales furnished by the assessee. As the assessee has been able to substantiate its claim from the agreement in accordance with which the commission was paid and comparative study of increase in export sales over the years. Thus, we are of the view that the authorities below were not justified in denying the payment of sales commission by the assessee to AE. - Decided in favour of assessee. Disallowance of late payment of the ESIC - Held that:- It is an undisputed fact that the assessee has deposited employees share of contribution towards ESIC before the due date of filing return under the Act. The Hon'ble Bombay High Court in the case of CIT Vs. Ghatge Patil Transports Ltd. (2014 (10) TMI 402 - BOMBAY HIGH COURT) by placing reliance on the decision of CIT Vs. Alom Extrusions Ltd. reported as (2009 (11) TMI 27 - SUPREME COURT) has held that the assessee would be entitled to deduction of contribution of employees welfare funds where the amount has been deposited before the due date of filing of return under the provisions of Income Tax Act. - Decided in favour of assessee.
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