9911796707
Advanced Search 
TMI Blog2015 (12) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal) for the Assessment Years 200708 and 200809. 3 Mr. Pinto, learned Counsel appearing for the Revenue urges the following common question of law in both the appeals for our consideration:S. "(a) Whether on the facts and in the circumstance of the case and in law, the Tribunal was justified in holding that commission payments made to nonresident sales agents on which no tax was deducted is not disallowable u/s. 40(a)(i)? (b) Whether on the facts and in the circumstances of the case and in law, the Tribunal was in error in holding that the company had sufficient free funds and the disallowance of interest was not warranted?". 4 Although the impugned order of the Tribunal is common and dealt with identical issue for both Assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion agent did not have any business connection in India as they had no permanent establishment in India and in fact neither any income arose or accrued to nonresident agent in India. The CIT(A), inter alia relied upon the decision of the Tribunal In DeIT v/s.Ardeshi B. Cursetjee & Sons Ltd. 115 TTJ 916 which held that the commission paid to nonresident agent outside India for the services rendered were not chargeable to tax in India. In these circumstances, the CIT(A) held that there was no occasion to deduct tax at source in respect of the payment made to the nonresident agent; (c) Moreover, the order of CIT(A) also holds that the Circular No.7 of 2009 withdrawing the earlier Circulars will not have retrospective effect so as to render ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the order of the CIT(A) for the Assessment Year 200809 also considers the order of the CIT(A) for the Assessment Year 200708 while dealing with the Revenue's contention as reflected in the orders of the Assessing Officer which are similar for both the Assessment Years. In fact, the reasons for the order of the CIT(A) for Assessment Year 200708 are identical to the Assessing Officer's orders in both the Assessment Years i.e. the earlier Circular Nos.23 of 1969 and 786 of 2000 stand withdrawn by Circular No.7 of 2003. Therefore, the earlier Circular which cover the issue would not be applicable/ available for the Assessment Years 200708 and 200809. In fact, the CIT(A) in his order for Assessment Year 200809 while allowing the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sequently i.e. on 22nd October, 2009 that the earlier Circular of 1969 and its reiteration as found in Circular No.786 of 2000 were withdrawn. However, such subsequent withdrawal of an earlier Circular cannot have retrospective operation as held by this Court in UTI v/s. P. K. Unny and Others 249 ITR 612. (i) In view of the above, not only the entire issue stands concluded in favour of the RespondentAssessee in the present facts by the CBDT Circular Nos. 23 of 2969 and 786 of 2000 which were in force during the subject Assessment Years but also by the decision of the Apex Court in Toshoku Ltd. (supra) in favour of the RespondentAssessee. Thus, no substantial question of law arises in the question framed for our consideration. Accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elf must specify the reasons for preferring an appeal failing which at least before admission the officer concerned should file an affidavit pointing out the reasons for filing the appeal. It is only when the court is satisfied with the reasons given, that the merits of the issue need be examined of purposes for admission [please see I.T.A. No.37 of 2013 CIT v. Proctor and Gamble Home Products Ltd. Dated January 19,2015 [2015] 377 ITR 66 (Bom.); I.T. A. No.269 of 2013, CIT v. SBI dated February 19, 2015 [2015] 375 ITR 20 (Bom); I.T.A. No. 330 of 2013 DIT v. Citibank N. A. dated March 11, 2015 [ 2015] 377 69 (Bom).] Filing of appeal under section 260A of the Act is a serious issue. The parties who seek to file such appeals (which are norm ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
