Mrs. Sajida Banu, L/H. of Late S. Abdul Rasheed, CHENNAI V. ACIT, CHENNAI

ITA 2308/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7859 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 08-08-2016
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: G BHASKAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI , ! ' . #$ % &' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO.2308 /MDS./2016 ( / ASSESSMENT YEAR :2010-11) MRS.SAJIDA BANU, L/H OF LATE S.ABDUL RASHEED, ,KATTUR SANDAYAPPAN STREET, PERIAMET CHENNAI 600 003. VS. THE ACIT, NCC-4, CHENNAI-34. PAN AAEPA 4214 E ( () / APPELLANT ) ( *+() / RESPONDENT ) / APPELLANT BY : MR.G.BHASKAR, ADVOCATE / RESPONDENT BY : MR.SHIVA SRINIVAS, JCIT, DR / DATE OF HEARING : 08.11.2016 /DATE OF PRONOUNCEMENT : 08.12.2016 , / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-5, CHENNA I DATED 25.05.2018 PASSED UNDER SEC.143(3) OF THE ACT. ITA NO. 2368/MDS/2016 2 2. AT THE TIME OF HEARING, THE LD. A.R OF THE ASSES SEE DID NOT PRESS GROUND NO.2.1. ACCORDINGLY, GROUND NO. 2.1 I S DISMISSED AS NOT PRESSED. 2.1 THE ONLY ISSUE RAISED BY THE ASSESSEE IN HER A PPEAL IS THAT LD.CIT(A) WENT WRONG IN UPHOLDING THE DISALLOWANCE OF THE ENTIRE SALES COMMISSION OF ` 14,08,257/-. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE CLA IMED THE EXPENDITURE OF ` 14,08,257/- TOWARDS FOREIGN AGENT COMMISSION FOR WHICH TDS WAS NOT MADE. THE CONTENTION OF THE LD.A .R WAS THAT THESE PAYMENTS WERE MADE OUTSIDE OF INDIA FOR THE S ERVICES RENDERED OUTSIDE INDIA AND NONE OF THE PARTIES HAVE ANY PERM ANENT ESTABLISHMENT (P.E) IN INDIA. THESE PAYMENTS FALL OUTSIDE THE PURVIEW OF SEC.195 OF THE ACT. THE LOWER AUTHORITI ES OF THE OPINION THAT THESE PAYMENTS ARE REQUIRED TO BE DEDUCTED TDS FOR WHICH THE ASSESSEE FAILED, THE PAYMENTS WERE DISALLOWED. AGAI NST THIS, THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. THE ASSESSEE WAS NOT ABLE TO SHOW THE NATUR E OF SERVICES RENDERED BY THE FOREIGN AGENT AND TERMS AND CONDITI ONS UNDER WHICH ITA NO. 2368/MDS/2016 3 THE SERVICES WERE RENDERED TO THE ASSESSEE, PAYMENT S WERE MADE. IN THE ABSENCE OF ANY EVIDENCES REGARDING THE NATUR E OF SERVICES AND THE PAYMENTS, WE ARE NOT IN A POSITION TO APPRECIAT E THE ARGUMENTS OF LD.A.R REGARDING THE LIABILITY OF THE EXPENDITURE. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LD.CIT(A) AND THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS DISMISS ED. ORDER PRONOUNCED ON 08 TH DECEMBER, 2016 AT CHENNAI. SD/- SD/- ! ' # . $ %& ' ( DUVVURU RL REDDY ) ) % / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER CHENNAI, DATED THE 08 TH DECEMBER, 2016. K S SUNDARAM. ()** +,*-, / COPY TO: * 1 . / APPELLANT 3. * .*!' / CIT(A) 5. ,/0* 1 / DR 2. / RESPONDENT 4. * . / CIT 6. 0&*2 / GF