DCIT, CHENNAI V. Kamil Leathers, CHENNAI

ITA 158/CHNY/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9344 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 17-05-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 28-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURESH KUMAR
• Assessee Lawyers: K RAVI

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A B ENCH, CHENNAI . , . , # $ BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI G.PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A.NO.158/MDS/2016 ( / ASSESSMENT YEAR: 2012-13) THE DEPUTY COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE -5, KANNAMMAI BUILDING, 611, ANNA SALAI, CHENNAI-6. VS M/S. KAMIL LEATHERS, 23, KARPURA STREET, PERIAMET, CHENNAI-600 003. PAN: AADFK4054B ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. SURESH KUMAR, JCIT /RESPONDENT BY : MR. K.RAVI, ADVOCATE /DATE OF HEARING : 17 TH MAY, 2016 /DATE OF PRONOUNCEMENT : 19 TH MAY, 2016 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL IS FILED BY THE REVENUE AGGRIEVED BY T HE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)- 5, CHENNAI DATED 26.11.2015 PASSED UNDER SECTION 1 43(3) R.W.S. 250(6) OF THE ACT. 2. THE GRIEVANCE OF THE REVENUE IN ITS APPEAL IS TH AT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ER RED IN DIRECTING THE LEARNED ASSESSING OFFICER TO DELETE T HE ADDITION OF ` 44,21,960/- MADE ON ACCOUNT OF NON-DEDUCTION OF TD S BY THE ASSESSEE ON THE PAYMENT MADE TO OVERSEAS 2 ITA NO.158/MDS/2016 COMMISSION AGENTS UNDER SECTION 40(A)(I) OF THE ACT . 3. AT THE OUTSET, THE LEARNED AUTHORIZED REPRESENTA TIVE FOR THE ASSESSEE SUBMITTED THAT THE IDENTICAL ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE BY THE CHENNAI BENCH OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSM ENT YEAR 2011-12 IN ITA NO.2260/MDS/2014 VIDE ORDER DATED 19.06.2015. 4. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPRESENTATIVE COULD NOT CONTROVERT TO THE SUBMISSI ONS OF THE LEARNED AUTHORIZED REPRESENTATIVE BUT ARGUED IN SUP PORT OF THE ORDER OF THE LEARNED ASSESSING OFFICER. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS ON RECORD. ON GOING THROUGH THE ORDER OF THE CHENNAI BENCH OF THE TRIBUNAL IN ASSESSEES OWN CAS E IN ITA NO.2260/MDS/2014 DATED 19.06.2015, WE FIND THAT THE IDENTICAL ISSUE HAS BEEN DECIDED BY THE TRIBUNAL IN FAVOUR OF THE ASSESSEE BY OBSERVING AS UNDER:- 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHER SIDE AND PERUSED THE RELEVANT MATERIAL ON RECORD. T HE ONLY OBJECTION OF THE REVENUE IS THAT LATEST TREND IN TH E FASHION 3 ITA NO.158/MDS/2016 WAS COMMUNICATED TO THE ASSESSEE SO AS TO ENABLE TH E ASSESSEE TO PRODUCE/MANUFACTURE ITS PRODUCTS IN TUN E WITH LATEST TREND WHICH PREVAILED IN THAT PART OF THE CO UNTRY. THIS TRIBUNAL IS OF THE CONSIDERED. OPINION THAT MERE COMMUNICATION OF LATEST TREND/FASHION PREVAILED IN A PARTICULAR COUNTRY CANNOT AMOUNT TO PROVIDING TECHN ICAL SERVICE. TECHNICAL SERVICE IS SOMETHING WHICH GOES IN THE MANUFACTURING PROCESS BY APPLYING THE TECHNIQUES PR OVIDED BY THE NON-RESIDENT. IN THIS CASE, NO TECHNIQUES WE RE PROVIDED BY THE NON-RESIDENT AND WHAT WAS COMMUNICA TION IS, ADMITTEDLY, FASHION/TREND PREVAILING OUTSIDE IN DIA. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT THIS DOES NOT AMOUNT TO PROVIDING ANY TECHNICAL SERVICE. THEREFORE, THIS TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) AND ACCORDINGLY THE SAME IS CONFIRMED. 6. FURTHER, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ALSO HELD THE ISSUE IN FAVOUR OF THE ASSESSEE IN THE RELEVANT ASSESSMENT YEAR FOLLOWING THE AFORE SAID DECISION OF THE TRIBUNAL. IN THESE CIRCUMSTANCES, W E DO NOT FIND IT NECESSARY TO INTERFERE WITH THE ORDER OF TH E LEARNED COMMISSIONER OF INCOME TAX (APPEALS). 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 19 TH MAY, 2016 SD/- SD/- ( . ) ( . ) (G.PAVAN KUMAR) ( A.MOHAN ALANKAM ONY ) # % / JUDICIAL MEMBER % / ACCOUNTANT MEMBER # /CHENNAI, ( /DATED 19 TH MAY, 2016 SOMU 4 ITA NO.158/MDS/2016 *+ ,+ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. - () /CIT(A) 4. - /CIT 5. + 1 /DR 6. /GF