9911796707
TMI Blog2012 (9) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... TDS schedule of the partner in question it is found that she is an agent of LICI, BALIC and Golden Trust Financial Services. As per para 16 of page 10 of partnership deed effective on the relevant financial year, no partner , without the consent of the other partner, can either directly or indirectly engage himself/herself in any other competitive business. Thus the partner in question should have been in possession of a no objection paper from the other partner to carry out her own agencies, but no such paper with respect of NOC is made available in the course of proceedings. 2. The Ld. CIT (A) has erred in deleting the addition of service tax amounting to Rs. 1,42,62,100/- being the amount debited in the P & L Account from the gross comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness of the assessee. There could be found no chamber of Smt Das in the head office of the assessee, at present. On query it has been gathered that she operates from her above stated address, in the contrary to the fact that all infrastructural facilities lie with the head office. From the TDS schedule of Smt Das, it is found that she is an agent of LICI, BALIC and Golden Trust Financial Services, herein after called as GTFS. On the other hand GTFS provides all infrastructural facilities to GE. These facilities include appointment of agents and collection of premium also, explicitly excludes GE's own administrative expenses. Thus apart from its own administrative operation there hardly is left any business activity of the assessee firm. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of Service tax. It has been stated that the Service Tax was deducted by the BALIC from the gross commission payable the GE, our assessee firm. On specific query in this regard it has been submitted by the authorised representatives that 'the Bajaj Allianz Life Insurance Company Ltd had appointed Golden Enterprise as their corporate agent and hence Bajaj Allianz Life Insurance Company Ltd being the Insurance Company is liable to pay Service Tax and they have deducted the Service Tax from the Gross Commission payable to Golden Enterprise.' It has also been stated that 'Service tax is liable to be paid by the insurance auxiliary service provider except in the case of insurance agents. Insurance agents do not charge the policy holder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of agreement between BALIC and GE, which was produced during the proceedings, is a premature copy and was in effect for a period one year from 19th June, 2004. Moreover, there could hardly be found any role of GE in paying Service Tax in the pyramid 'policy holder- agent corporate agent-auxiliary service provider/the concerned insurance company who has appointed the agent'. The contention of the assessee that it has reimbursed the service tax cost incurred by BALIC is not valid in law and the expenditure of Rs. 1,42.62,l00/- claimed to have been incurred on account of Service Tax is hereby disallowed and added back to the total income of the assessee." 4.2. On appeal the ld. CIT(A) has deleted both the additions after obtaining the remand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the commission vouchers that BALIC paid the net amount after deduction of service tax. This was done as per Service Tax Rules, 1994 [Rule 2 (d)(iii)] which says - "person liable for paying service tax means ---- in relation to insurance auxiliary service by an insurance agent, any person carrying on the general insurance business [or the life insurance business, as the case may be,] in India." Whereas, the appellant credited the entire gross commission and debited the service tax in its books. The net result would be the same. The AO examined this very issue at the time of assessment proceedings but did not point out any discrepancies. He made the addition on surmises. The AO is therefore, directed to delete the addition of Rs,1,42, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
