TMI Blog2016 (1) TMI 1123X X X X Extracts X X X X X X X X Extracts X X X X ..... ing deduction of TDS on the above payment and also filing of TDS return by the assessee along with assessment order u/s. 143(3) of the Act for AY 2006-07 and the remand report of the AO on 31.12.2012. We find that the AO has objected to the admission of additional evidences under Rule 46A of the Rules and he mainly relied on the findings given by the AO in his assessment order. We find that the AO has been confronted with all the additional evidence by the CIT(A) in term of Rule 46A of the Rules and he has submitted a remand report. We find that AO in his remand report dated 31.12.2012 has alleged that the disallowance for payment by assessee to GSSIS and debited in the accounts as coordination charges was made by the AO and reasserted the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 46A overruling objection of the Assessing Officer. 2. That on the facts and circumstances of the case the CIT(A) erred in deleting disallowance of ₹ 1.10 crore made by the AO on account of amount paid to M/s. Ganco SS India Pvt. Ltd. 3. Briefly stated facts are that the assessee is del credre agent of Haldia Petro Chemicals Ltd. (HPCL). The assessee and HPCL entered into an agreement from time to time and as per terms and conditions of the agreement, assessee is obliged to organize, advertise, promote and market the product of HPCL and also realization of all bills of HPCL from parties. The assessee with the object of increasing in business and secured timely realization of sale bills of HPCL, agreed with GSSIL to act a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 45,833 metric tones of the materials from more than 75 customers by A/c Payee cheque after deduction of TDS. It is pertinent to note that the similar coordination charges payment was accepted by order dated 26.11.2008 u/s. 143(3) for AY 2006-07 by DCIT, circle-2, Kolkata. Therefore keeping in the view the above facts and circumstances the ground of appeal no. 1 is allowed. Aggrieved, now revenue is in appeal before us. 4. We have heard rival submissions and gone through facts and circumstances of the case. We find that the assessee company was a del credre agent of HPCL for whole of the West Bengal. The assessee paid a sum of ₹ 1.10 cr. to GSSIL as coordination charges for supervising the work of timely lifting of goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed as deduction in the case of the assessee. The assessment for the Assessment year 2006-07, the first year of assessee s business with M/s. Ganco, was completed u/s. 131 of the Act and after examining the genuineness of the transaction with M/s. Ganco. This fact is verified from the Assessment Order for the Assessment Year 2006-07. ii) A del credere is one under which the agent, in consideration remuneration, engages to insure to his principal not only the solvency of the debtor, but the punctual discharge of the debt; and he is liable, in the first instance, without any demand from the debtor. iii) M/s. Ganco is regularly assessed to tax under PAN:AABCG7681D. iv) M/s. Ganco is also registered with Service Tax un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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