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of <h1>Tribunal upholds CIT(A) decision on commission, PF, ESI, dismisses Revenue appeal.</h1> The Tribunal upheld the CIT(A)'s decision to delete the disallowance of commission under section 40(a)(ia) of the IT Act for various parties, emphasizing ... TDS u/s 195 - Disallowance of commission u/s 40(a)(ia) - HELD THAT:- As decided in own case [2016 (2) TMI 1339 - ITAT JAIPUR] CIT(A) has given a clear finding that the services rendered and expenditure incurred is in the nature of commission. Given the fact that the commission has been paid in relation to export of garments outside India and the fact that the no services have been rendered in India we are unable to accede to the arguments of the Ld. DR that the subject payments are taxable in India. Assessee paid commission in relation to export of garments as apparent from the agreement as well as working of the commission payments. Accordingly, provisions of section 195 are not attracted in the instant case - Decided in favour of assessee. Addition made for depositing the employee’s contribution to PF &ESI beyond the prescribed time limit provided in the respective Acts - HELD THAT:- As employees contribution to ESI and PF has been paid before filing of the return of income u/s 139(1) of the IT Act. In view of the consistent stand taken by this Bench and respectfully following the decision of the Hon’ble Rajasthan High court in the case of State Bank of Bikaner and Jaipur [2014 (12) TMI 65 - RAJASTHAN HIGH COURT] and others, the ground taken by the Revenue is dismissed and assessee’s cross-objection is allowed. Issues involved:1. Disallowance of commission under section 40(a)(ia) of the IT Act.2. Disallowance of employee's contribution to PF & ESI.Analysis:Issue 1: Disallowance of commission under section 40(a)(ia) of the IT Act:The Revenue appealed against the CIT(A)'s order deleting the disallowance of commission. The CIT(A) directed the deletion of disallowance for various parties based on submitted agreements and detailed statements. The AR supported the CIT(A)'s order, citing similar cases and decisions in favor of the assessee. The Coordinate Bench's decision for A.Y. 2011-12 supported the assessee, emphasizing that the commission paid for export services outside India was not taxable in India. The Tribunal confirmed the CIT(A)'s order, dismissing the Revenue's ground and allowing the assessee's cross objection.Issue 2: Disallowance of employee's contribution to PF & ESI:Regarding the disallowance of employee's contribution to PF & ESI, the CIT(A) allowed the claim based on timely payment before the due date of filing the return of income u/s 139(1). Citing judgments of the Rajasthan High Court and previous cases, the CIT(A) directed the deletion of disallowance. The Coordinate Bench's decision for A.Y. 2011-12 supported the assessee's position, leading to the dismissal of the Revenue's ground. The Tribunal confirmed the CIT(A)'s decision, dismissing the Revenue's ground and allowing the assessee's cross-objection. Consequently, the appeal filed by the Revenue was dismissed, and the assessee's cross-objection was partly allowed.
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