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Income-tax Officer, Wd-2 (1) , Kolkata. Versus M/s. Rajami Barter Pvt. Ltd.

2016 (1) TMI 1123 - ITAT KOLKATA

Disallowance of coordination charges paid - admissibility of additional evidence - Held that:- 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 and their subsequent delivery to the parties or following up payments thereof. - We find from the order of CIT(A) that the assessee has filed written submissions containing the .....

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ssment 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 position in the remand report also. We find that the AO in his remand report neither referred to nor dealt with the e .....

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e For the Respondent: Shri A. K. Tibrewal, FCA & Shri Amit Agarwal, Advocate ORDER Per Shri Mahavir Singh, JM: This appeal by revenue is arising out of order of CIT(A)-I, Kolkata vide Appeal No. 935/CIT(A)-1/2(1)/11-12 dated 11.01.2013. Assessment was framed by ITO, Ward- 2(1), Kolkata u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the Act ) for Assessment Year 2009-10 vide his order dated 28.12.2011. 2. T .....

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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 realiza .....

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paid coordination charges at ₹ 1.10 cr. and claimed the expenses in its return of income. The AO while framing assessment disallowed the entire sum of ₹ 1.10 cr. paid by the assessee company to GSSIL only on the reason that there is no written agreement between the assessee and GSSIL regarding arrangement between them for supervising and lifting work though all the arrangements were made on verbal communication. According to AO, the assessee could not produce any corroborative evide .....

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ve submissions and the counter comments of the appellant the coordination charges of ₹ 1,10,00,000/- was paid by the appellant M/s. Ganco SS Pvt. Ltd. for managing a turnover of 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 fac .....

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up payments thereof. We find from the order of CIT(A) that the assessee has filed written submissions containing the details of agreement with HPCL, bill of GSSIL, quantitative details or correspondence between the assessee and GSSIL and proof regarding 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 .....

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s coordination charges was made by the AO and reasserted the position in the remand report also. We find that the AO in his remand report neither referred to nor dealt with the evidence produced by assessee before CIT(A), which in turn, were referred to him the facts are emerging from the case records. i) M/s. Ganco is a del credere agent for the assessee since 1st April, 2005 and the coordination charges to them from year to year has been allowed as deduction in the case of the asses .....

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