TMI Blog2016 (5) TMI 1351X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of the above, we do not find any merit in the disallowance so made by the AO. See Indo Industries Ltd. Versus Income-tax Officer, 2 (2) (2) (1) , Mumbai [2015 (5) TMI 709 - ITAT MUMBAI] - Decided in favour of assessee. Disallowance u/s.14A/36(1)(iii) - Held that:- there is no infirmity in the order of CIT(A) for restoring the matter back to the file of AO for recalculating the disallowance u/s.14A/36(1)(iii) as per the directions given by the Tribunal in its order for the assessment year 2004-05 and 2006-07 it is held that the action of the AO in making the additions under the sections under discussion is upheld but to maintain a rule of consistency and to bring the correct income to taxation, the AO is directed to take necessary acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... branch outside India. The export sales are made through the contacts of agents. The agents, situate in foreign countries, identify the potential customers. The agent thereafter introduces the assessee company to the potential customers. The assessee company thereafter interacts with the potential customer. The agent co-ordinates with the assessee company in regard to the orders placed by the customers and supply of material. The agent also facilitates and assists the assessee company in collection of sale proceeds, if required. Thus the export sales are made to a party outside India through the services rendered by the agent outside India. The commission is paid to agents outside India for the purpose of earning any income from any source o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order of the coordinate bench in assessee s own case for the assessment year 2004-05 and 2006-07 dated 31-10-2011. The precise observation of the CIT(A) are as under :- 3.5. Respectfully following the order of the Hon'ble ITAT dated 31/10/2010 passed on the appellant's own case for AY 2004-05 and 2006-07 and agreeing with the findings as given in the appellate order for AY 2007-08 dated 7/6/2012 of CIT(A), it is held that the action of the AO in making the additions under the sections under discussion is upheld but to maintain a rule of consistency and to bring the correct income to taxation, the AO is directed to take necessary action regarding the calculation of the quantum of disallowance that has to be made in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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