M/S VENUS APPARELS THROUGH VISHWA JIT KAURA vs. COMMISSIONER OF INCOME TAX, LUDHIANA

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ITA/207/2017HC Punjab & HaryanaPHHC01117400201717 May 2018Bench: MR. JUSTICE DR. SHEKHER DHAWAN,MR. JUSTICE SURINDER GUPTA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The appeal was dismissed as withdrawn. The assessee, M/s Venus Apparels, sought permission to withdraw the appeal with the liberty to approach the Tribunal by filing a miscellaneous application under Section 254(2) of the Act. The High Court granted this liberty. Therefore, no decision was made on the merits of the disallowance of commission under Section 40(a)(ia) read with Section 195(1) of the Act. The operative direction was to permit the withdrawal and allow the assessee to pursue alternative remedies.

What were the facts?

The assessee, M/s Venus Apparels, filed an appeal under Section 260A of the Income Tax Act, 1961, challenging an order dated 10.08.2016. This order disallowed a commission of Rs. 47,52,247/- paid to foreign agents, which represented 10% of the total sales booked by them. The disallowance was made under Section 40(a)(ia) read with Section 195(1) of the Act. The appeal was filed before the High Court of Punjab & Haryana at Chandigarh.

What were the issues?

1. Whether the commission paid to foreign agents is disallowable under Section 40(a)(ia) read with Section 195(1) of the Income Tax Act, 1961? The assessee, M/s Venus Apparels, sought to challenge the disallowance of commission paid to foreign agents. The revenue, represented by the Commissioner of Income Tax, Ludhiana, had disallowed this commission. The specific arguments presented by each side are not detailed in the provided judgment, as the appeal was withdrawn before substantive arguments were made. The core of the dispute, however, revolved around the applicability of Section 40(a)(ia) and Section 195(1) to the commission paid to foreign agents.

Which sections of the Income-tax Act were involved?

Section 260A,Section 40(a)(ia),Section 195(1),Section 254(2)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-207-2017 (O&M) Date of Decision:17.05.2018 M/s Venus Apparels ... Appellant Versus Commissioner of Income Tax, Ludiana ... Respondent CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL, ACTING CHIEF JUSTICE. HON'BLE MR.JUSTICE TEJINDER SINGH DHINDSA. Present:- Mr. Sunil K. Mukhi, Advocate for the appellant. ... AJAY KUMAR MITTAL, ACJ. 1. The present appeal has been preferred under Section 260A of the Income Tax Act, 1961 (in short the 'Act') assailing the order dated 10.08.2016 (Annexure A-3) in terms of which commission of Rs.47,52,247/- paid to Foreign Agents @ 10% of the total sales booked by them has been disallowed under Section 40 (a) (ia) read with Section 195(1) of the Act. 2. After arguing for sometime, learned counsel for the appellant submitted that he may be allowed to withdraw the present appeal with liberty to approach the Tribunal by way of filing miscellaneous application under Section 254 (2) of the Act. 3. Dismissed as withdrawn with liberty to the appellant to take Harjeet Kaur 2018.05.21 14:58 I attest to the accuracy and integrity of this document

ITA-207-2017 (O&M) -2- recourse to the remedies as may be available to it in accordance with law. (AJAY KUMAR MITTAL) ACTING CHIEF JUSTICE (TEJINDER SINGH DHINDSA) 17.05.2018 JUDGE

harjeet i) Whether speaking/reasoned? Yes/No ii) Whether reportable? Yes/No Harjeet Kaur 2018.05.21 14:58 I attest to the accuracy and integrity of this document

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