Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 248 - HC - Income TaxAddition u/s. 40(a)(ia) towards payment of commission of foreign agents - non deduction of tds - withholding of tax - whether commission paid to export agents is taxable in India in view of sec.5(2)(b) r.w.s. 9(1)(i) of IT Act? - Held that:- The question would not arise because the finding of the fact remained unchallenged. The question of TDS on commission income paid to foreign agents and the non-deduction of TDS is an issue fully covered by the decision of the Supreme Court in GE India Technology Centre Private Limited v Commissioner of Income Tax & Anr. (2010 (9) TMI 7 - SUPREME COURT OF INDIA) as held that commission earned by a non-resident (that is to say, foreign) agent who carried on the business of selling Indian goods outside India cannot be said to be deemed income accrued or arising in India. Disallowance of additional depreciation - proof of activities carried out by the assessee amounts to manufacture or production as defined in section 2(29BA) - Held that:- Mining for the purpose of production of mineral ore falls within the ambit of the word ‘production’. The Division Bench of this Court had held that in such a process, ore has to be extracted or raised from earth. This activity is ‘production’, entitling the assessee to the benefit of Section 32(A) of the Act. Thus, there would be an allowable depreciation deduction in respect of the machinery used in mining. It cannot be said that mining is neither production nor manufacture. See Sesa Resources Ltd. case [2017 (9) TMI 126 - BOMBAY HIGH COURT] Addition under Section 40(a)(ia) r/w. Section 195(1) - demurrage paid to a non-resident buyer of iron ore without deducting TDS - Held that:- This issue is also fully covered by the decision in GE India (2010 (9) TMI 7 - SUPREME COURT OF INDIA) and the assessee’s reliance on the decision of the Bombay High Court in Commissioner of Income-Tax v Orient (Goa) Private Limited [2009 (10) TMI 575 - Bombay High Court] is misplaced for that judgment was expressly overruled by the Full Bench of the Bombay High Court in Commissioner of Income Tax v VS Dempo and Company Pvt Ltd. [2016 (2) TMI 308 - BOMBAY HIGH COURT). No substantial question of law
|