ACIT, CIRCLE-33(1), NEW DELHI vs. LUCKY EXPORTS, NEW DELHI

ITA 5502/DEL/2017Status: DisposedITAT Delhi27 August 2025AY 2011-12Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI SUDHIR PAREEK (Judicial Member)14 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, finding that the commission payments were genuine and supported by evidence. It also held that the interest disallowance was unjustified as the assessee had sufficient interest-free funds to cover its investments.

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of disallowances made on commission expenses, legal & professional charges, and interest expenses for AY 2011-12 and 2012-13. The assessee had claimed these expenses, and the Assessing Officer had disallowed them on various grounds including lack of proof of services and non-deduction of TDS.

What were the issues?

Whether commission expenses paid to foreign agents and legal/professional charges were allowable. Whether disallowance of interest on loans to sister concerns was justified.

Which sections of the Income-tax Act were involved?

Section 195

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Income Tax Appellate Tribunal, DELHI BENCH: ‘F’: NEW DELHI

Before: SHRI S. RIFAUR RAHMAN & SHRI SUDHIR PAREEK

For Respondent: Ms. Suman Malik, CIT(DR)
Hearing: 10.07.2025Pronounced: 27.08.2025

PER SUDHIR PAREEK, JM: Both these appeals have been preferred by the Revenue against the orders of the Ld. Commissioner of Income -tax (Appeals)-11, New Delhi, ([in short (Ld. CIT(A)] Dated 09/06/2017 and 05/09/2017 for the Assessment Years 2011-12 and 2012-13 respectively. Since identical issues are involved in both the appeals, these are disposed

ITA Nos.-5502 & 713/Del/2017 Lucky Exports of by this consolidated order for the sake of convenience and brevity. For the sake of convenient, we take ITA No. 5502/Del/2017 for the Assessment Year 2011-12 as a lead case to dispose of these two appeals

1.

1 The Revenue has r

The order continues below.

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