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2022 (5) TMI 538 - AT - Income TaxDisallowance of bad debts - CIT- allowed bad debts claim - DR submitted that the CIT(A) has erred in allowing the bad debts claim irrespective of the fact that the assessee could not establish the debt has become bad and doubtful - HELD THAT:- AR explained that the actual bad debts written off are Rs. 17,86,898/-, whereas the net bad debts written off in the profit and loss account is Rs. 10,56,082/-, whereas the A.O has not considered the sundry balances written off. The Ld.A substantiated with the party wise details of the bad debts written off at page 77 to 92 of the paper book. We find that the CIT(A) has relied on the Hon’ble Supreme Court decision [2010 (2) TMI 211 - SUPREME COURT] and the factual findings in the books of account and allowed the deduction Disallowance of Foreign exchange loss - A.O has made adequate enquiry with respect to mark to market basis while making the addition - CIT-A deleted the addition - HELD THAT:- CIT(A) has considered the foreign exchange rate difference and the fact of calculation of net foreign exchange loss in the books of accounts and relied on the Hon’ble Supreme Court decision in the case of Woodward Governor India Pvt Ltd [2009 (4) TMI 4 - SUPREME COURT] TDS u/s 194A - interest paid to others. - Addition u/s 40(a)(ia) - CIT(A) has allowed the claim of the assessee - HELD THAT:- Appellant during the course of appellate proceedings have provided the details of interest paid. The same was provided during the scrutiny proceedings. AO is directed to delete the addition made on account of interest paid to others. The ground of appeal filed on this issue is hereby allowed. Disallowance of commission and brokerage paid to resident and foreign agents - A.O has made an addition irrespective of the fact that the provisions of Sec. 194A of the Act are not applicable to the foreign agents - CIT-A deleted the addition - HELD THAT:- Assessee has made two types of payments were the commission payment was paid to the agents in India for procuring the sales order and TDS has been deducted u/s 194H of the Act. The assessee has submitted the party wise details along with the ledger accounts, sample invoice, TDS certificate before the A.O. Whereas in respect of the foreign party transactions towards export commission paid to foreign agent, the agents are not the citizens and they are the residents of foreign country and they do not have permanent establishment(PE) in India and the commission income of the foreign agent cannot be taxed in India, since the operations are from their own country and the no TDS has been deducted u/s 194A CIT(A) has considered the factual aspects and judicial decisions in respect of all the disputed issues raised in the revenue appeal and passed a reasoned and speaking order.The Ld.DR could not controvert the observations of the CIT(A) with any new cogent material or information and relied on the order of the Assessing officer - Revenue appeal dismissed.
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