Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 1056 - AT - Income TaxEstimation of NP rate at 5% - HELD THAT:- Undisputedly, the NP rate of assessee from previous years vary 2.49% to 1.86%. Therefore, at the best we take NP rate of 2.49%, which is NP rate for A.Y. 2011-12 or we can take 5% as proposed by the authorities below. To balance the equity, trend of industry, past NP rate of assessee and turnover of the assessee we reduce the NP rate of 5% to 4%. AO is directed to work out the income of the assessee accordingly. In the result the ground no1 of the assessee is partly allowed. Disallowance u/s. 40(a)(ia) - commission was paid to foreign agent - HELD THAT:- The commission was admittedly paid outside India. There is no situs in India. The modus operandi of assessee is clear that the assessee is recipient of income in India after deduction of commission by the buyer made outside India . Thus, no income has been received or paid inside India , which attract deduction of TDS in India and therefore, the assessee is not liable to deduct TDS in India. The nature of transaction is not disputed. The case of AO was that the assessee has not deducted TDS , as the commission was paid to foreign agent, however he had not denied payment of commission by the assessee for procuring the orders. In view of the above, we allow this ground of the assessee on merit and delete the disallowance made u/s. 40(a)(ia). Applying the GP rate of 1.86% and to this duty draw back was added by the assessee - While calculating the net profit, the assessee has not taken into account the duty draw back and had separately added to the NP rate calculated by him. In the result the ground of the assessee is dismissed.
|