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2017 (2) TMI 330 - AT - Income TaxDeduction of travelling expenditure - Held that:- This Tribunal is of the considered opinion that when the assessee has made comprehensive payment of commission, which included travelling expenditure, deduction towards travelling expenditure of foreign agent cannot be claimed. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. - Decided against assessee TDS u/s 195 - Disallowance u/s 40(a)(ia) - non deduction of tds on services of Walmsleys Ltd., UK for engineering drawings - Held that:- Erection of the machine was done by the engineers of M/s. Walmsleys Ltd., UK in India. In fact, the engineers came down to India to the site of the assessee to supervise the erection personally. This clearly demonstrates that the engineering service was rendered in India by M/s. Walmsleys Ltd. UK. Even though the design and drawings were said to be prepared in the UK, mere preparing design and drawings would not complete the service rendered by M/s. Walmsleys Ltd. UK. The Walmsleys Ltd. UK has to necessarily execute the project and supervise the same in India. Therefore, the UK company not only made available of design and drawings to the assessee-company but also erected the entire project in India under the personal supervision. Therefore, the services rendered by M/s. Walmsleys Ltd., UK, is very much taxable in India. Assessee has to necessarily deduct tax under section 195 of the Act - Decided against assessee Addition under section 28(iv) - advance receipt - Held that:- The assessee could not furnish any details with regard to so called advance said to be received and details of the supplies made to the above parties. Even though the assessee incurred an expenditure of ₹ 14,92,200 in executing the orders, which was shown as work-in-progress, the assessee could not produce any material before the authorities below regarding work-in-progress. In the absence of details, this Tribunal is of the considered opinion that the Commissioner of Income-tax (Appeals) has rightly confirmed the addition made by the Assessing Officer. - Decided against assessee
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