TaxTMI 
TaxTMI 
2013 (6) TMI 313
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.... assessee has failed to establish the genuineness of transactions and reasonableness of payments in support of alleged payments of commission? 2. Whether the Tribunal is right in law and on facts in confirming the order passed by the CIT(A) in deleting the addition of Rs. 1,28,28,072/- on account of writing back of loan liability, admitting fresh evidences in violation of Rule 46A without appreciating the fact that though specifically called for has not submitted such details during the assessment proceedings? 3. Whether the Tribunal is right in law and on facts in deleting the addition of Rs. 66,77,655/- on account of interest income on FDR not offered for taxation without appreciatin....
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....ssion to this party and the sale of the assessee has increased considerably i.e. from Rs. 7.40 crores to Rs. 24.27 crores. It is also noted by Ld. CIT(A) that this agreement was executed on 01.04.2000 for making local sales. It was submitted before Ld. CIT(A) that before this year, the assessee was mainly making export sales directly or indirectly and it has decided to enter into local market for sale for the first time and it had no infrastructure for achieving the local sales to this extent. It is also noted by Ld. CIT(A) that payment of commission has been approved by the Board of Directors and the agent has shown the commission income in its return of income. Regarding services, it was noted by Ld. CIT(A) that agent had provided service....
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....ssee by following the judgement of Hon'ble Gujarat High Court rendered in the case of Chetan Chemicals Pvt. Ltd. (supra) and as per the provisions of Section 41(1) of the Income Tax Act, 1961. As per this judgement of Hon'ble Gujarat High Court, no addition can be made u/s. 41(1) of the Income Tax Act, 1961 in respect of remission of any loan liability for which no deduction was allowed to the assessee in the present year or in any earlier year. We find that before the A.O. also, reliance was placed by the assessee on this very judgement of Hon'ble Gujarat High Court rendered in the case of Chetan Chemicals Pvt. Ltd. (supra). The A.O. has decided this issue against the assessee on this basis that since the assessee has written back the liab....
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....ot find any merit in ground No. 6 of the revenue and ground No. 5 of the revenue is also devoid of any merit because in the facts of the present case, section 41(1) is not attracted because this benefit has not arisen to the assessee in the course of business of taking and giving loan and no deduction was allowed to the assessee in respect of this loan liability at any point of time. Hence, we decline to interfere in the order of Ld. CIT() on this issue. Both these grounds of the revenue are rejected." 7. The view of the Tribunal finds support from the decision of this Court in case of Chetan Chemicals (P.) Ltd. (supra) Counsel for the revenue, however, placed reliance on the decision of Delhi High Court in case of Rollatainers Ltd. v. C....