DCIT, Cir-10(2), Kolkata vs. M/S Vineetaz Exports Pvt. Ltd., Howrah
In the result, appeal of the revenue is dismissed
ITA 978/KOL/2016[2011-2012]Status: DisposedITAT Kolkata07 Sept 2018AY 2011-2012
Bench: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravi) Assessment Year: 2011-12 Deputy Commissioner Of Income Tax, Circle-10(2), Kolkata…………………………….……..Appellant Vs. M/S. Vineetaz Exports Pvt. Ltd……………………………………........……….......……….…..………...Respondent 24/25, Moulana Abul Kalam Azad Road 41/A, Ajc Bose Road 2Nd Floor Room No. 206 Howrah – 711 101 [Pan : Aaacv 8640 E] Appearances By: Shri Subash Agarwal, A/R, Appeared On Behalf Of The Assessee. Shri S. Dasgupta, Addl. Cit, D/R. Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : July 16Th, 2018 Date Of Pronouncing The Order : September 7Th , 2018 Order Per J. Sudhakar Reddy, Am :- This Is An Appeal Filed By The Revenue Directed Against The Order Of The Commissioner Of Income Tax (Appeals) - 4 Kolkata, (Hereinafter The ‘Ld. Cit(A)’), Dt. 22/02/2016, Passed U/S 250 Of The Income Tax Act, 1961 (Hereinafter The ‘Act’), Relating To Assessment Year 2011-12. 2. The Assessee Is A Company & Is In The Business Of Manufacturing & Trading Of Textiles & Machinery Products. It Filed Its Return Of Income On 30/09/2011, Declaring Total Income At Rs.1,77,45,540/-, For The Assessment Year 2011-12. The Assessing Officer Passed An Order U/S 143(3) On 10/03/2014, Determining The Total Income At Rs.6,30,05,406/-, Interalia Disallowing The Claim Of Expenditure Of Commission Paid To Foreign Agents For Exports, Ad-Hoc Disallowance Of 20% Of The Salary Paid To Employees U/S 40A(2), Disallowance Entertainment Expenditure & Expenditure Incurred On Foreign Tours, Disallowance U/S 40(A)(Ia) Of The Act Etc. Aggrieved, The Assessee Carried The Matter In Appeal. The Ld. First Appellate Authority Granted Part Relief.
Section 143(3)Section 14ASection 250Section 40Section 40A(2)
…of commission paid by the assessee to a foreign agent. He held that the chart furnished by the assessee in support of the rate of commission paid justifies the payment. He relied on the decision of the Hon’ble Supreme Court in the case of CIT v Toshoku (1980) 125 ITR 525 (SC), for the proposition that no TDS is required to be made in this case as the foreign agents have rendered services outside India and as they do not have any permanent establishment anywhere. 5.2. We find no infirmity in these factual findings of the ld. CIT(A). The ld. D/R, could not controvert these factual findings of the ld. CIT(A). Hence,…
