9911796707
TMI Blog2015 (8) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... s return of income for the AY.2008- 09 on 16-09-2008 admitting income of `1,97,53,442/-. The case of the assessee was selected for scrutiny and notice u/s. 143(2) was issued to the assessee on 03-09-2009. The Assessing Officer vide order dated 08-10-2010 made addition/dis-allowance on account of foreign travel expenses in the income returned by the assessee. 3. The Commissioner of Income Tax-I, Coimbatore initiated proceedings u/s.263 of the Act on the ground that the assessee had claimed `2,19,15,480/- towards commission paid to non-resident foreign companies without deduction of tax at source. The Commissioner of Income Tax concluded that since the assessee has failed to deduct tax at source from the commissions paid to the overseas age ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iii. ACIT Vs. M/s.Farida Shoes Private Ltd., in ITA No.359/Mds/2013 (AY.2008-09) decided on 11th April, 2013. 5. On the other hand, Shri B. Arulappa, appearing on behalf of the Revenue vehemently supported the order of Commissioner of Income Tax and prayed for the dismissal of the appeal of the assessee. 6. We have heard the submissions made by the representatives of both the sides and have also perused the impugned order as well as the orders relied upon by the ld. Counsel for the assessee. The brief facts of the case are that: assessee is engaged in the trading of yarn with various countries. In order to sell its products, the assessee appointed agents on sales commission basis in various countries. The relationship between the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Similar view has been taken by the co-ordinate bench of the Tribunal in the cases of M/s. Prakash Impex Vs. ACIT (supra) and ACIT Vs. M/s.Farida Shoes Private Ltd.,(supra). 7. We find, that the facts in the present case are similar to the one adjudicated by the co-ordinate bench of the Tribunal in the aforesaid cases. Respectfully following the same, we hold that the view taken by the Commissioner of Income Tax is erroneous. The provisions of section 195 and section 9 of the Act, relating to deduction of tax at source on payments made to foreign parties and levy of tax on payments so made are not applicable in the present facts of the case. The impugned order is set aside and the appeal of the assessee is allowed. Order pronounced on Mon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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