Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 837 - ITAT DELHIDeletion of disallowance of USA expenses - non deduction of TDS on remittance to non-resident - reimbursement of expenses - Held that:- Following Himalya International Ltd. Versus DCIT Circle-12(1), New Delhi and ITO, Ward-12(4), New Delhi Versus Himalya International Ltd. [2014 (3) TMI 617 - ITAT DELHI] - all US expenses incurred by the consignment agent on behalf of the assessee were the responsibility of the assessee as per MOU dated 19.9.2002 and subsequent agreement dated 30.3.2004, which were also certified by CPA audit report, when actual export sale was effected at USA through consignment agent on behalf of the assessee, then expenses claimed by the assessee for the purpose of business cannot be treated as post sales expenses and observations and findings of the Assessing Officer are not correct and justified in this regard and we set aside the same to this extent only – relying upon GE India Technology Centre Private Ltd. Versus Commissioner of Income Tax & Anr. [2010 (9) TMI 7 - SUPREME COURT OF INDIA] followed – thus, Circular No. 715 dated 8.8.95 is not applicable. The AO concluded the assessment n contradictory finding because on the one hand, the AO has considered gross sales realized value in USA as sales of the assessee for the financial year under consideration and on the other hand the AO held that the export sale was completed when the consigned goods left the Indian Customs Border and all expenses incurred thereafter were post sale expenses – thus, the first part of findings of the AO are correct that the gross sales realized value in USA is the export sales of the assessee but export sales was not completed when the goods left the Indian Custom Borders because it was consignment which was intended to be sold through consignment agent of the assessee i.e. M/s Global Reliance In. in USA - CIT(A) has very elaborately dealt with the issue and had rightly deleted the addition – Decided against Revenue. Deletion of late deposit of ESIC and PF - Held that:- Following Commissioner of Income Tax Versus AIMIL Limited and others [2009 (12) TMI 38 - DELHI HIGH COURT] - CIT(A) has allowed the claim of the assessee on account of payment of employees contribution / PF and ESIC - the amount of PF/ESIC was deposited before the due date of filing of return u/s 139(1) of the Act – Decided against Revenue.
|