TMI Blog2014 (11) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... upon deeming provisions under Section 9 of the Act to hold that M/s. Global Reliance Inc. was covered and should be taxed in India in respect of the said income and, therefore, the TDS u/s 195 of the Act should have been deducted - specific sub-section which could be applicable was not stated and adverted to – thus, the order of the Tribunal is upheld – Decided against revenue. - ITA 437/2014 - - - Dated:- 16-10-2014 - Sanjiv Khanna And Jayant Nath Sanjiv Khanna,JJ. For the Appellant : Mr. Kamal Sawhney, Sr. Standing Counsel For the Respondent : Through ORDER The present appeal by the Revenue relates to assessment year 2005-06 and the challenge is to the deletion of addition of ₹ 4,07,92,581/- out of addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (in Rs.) 1. Ocean freight 12881000 2. Duties 4385000 3. Warehousing expenses 1183000 4. Road freight USA 9822000 5. Selling and administrative expenses 15107000 Total 43378000 The Assessing Officer held that these expenses were in nature of post sale expenses and, therefore, did not pertain to the assessee. Evidence placed on record by the assessee to show th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded as M/s. Global Reliance Inc , were relied upon. With regard to warehousing expenses, the C.I.T(Appeals) observed that some of the invoices, were in the name of M/s. Global Reliance Inc and some were in the name of Transatlantic Marketing ( Associate of M/s Global Reliance Inc.). The documents duly and affirmatively supported the assessee‟s claim. 4. The C.I.T(Appeals) elucidated that the respondent-assessee had a 100% export oriented factory at Paonta Sahib, Himachal Pradesh. The entire production from the said factory was exported to the USA. Exports were made in sealed containers from the factory. The net realisable value, after deduction of all the expenses incurred, was declared. In support of the exports, Forms ARE-I, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd accepted. Counsel for the appellant-Revenue had taken time to examine the matter. 7. We find that the Revenue has not placed on record invoices, bills etc. It has not indicated and highlighted as to why and for what reason, the factual finding is perverse. 8. Having examined the reasons given in the assessment order and factual position and detailed discussion by the C.I.T(Appeals), affirmed by Tribunal, which has been noticed above, we do not think that findings recorded by the appellate authorities can be treated and regarded as perverse. We also record that the C.I.T(Appeals) had sustained addition of ₹ 25,85,419/- out of addition of ₹ 4,33,78,000/- made by the assessing officer, noticing that the assessee had not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely upon Section 194C of the Act. It is clear that application of Section 194C of the Act was not pleaded before the Tribunal. 10. As far as Section 195 is concerned, the same would not be applicable as it is apparent that M/s. Global Reliance Inc. did not have any business operations in India and they were functioning and operating in the USA. From the order of the Tribunal, it does not appear that the Revenue had relied upon deeming provisions under Section 9 of the Act to hold that M/s. Global Reliance Inc. was covered and should be taxed in India in respect of the said income and, therefore, the TDS under Section 195 of the Act should have been deducted. Moreover, specific sub-section which could be applicable was not stated and adve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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