TaxTMI 
TaxTMI 
2015 (6) TMI 944
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....the initiation of penalty proceedings u/s 271(1)(c) of the Income Tax Act, 1961 (the Act). 3. The Revenue is also in appeal in respect of following issues : a) Allowing interest expenditure claimed against the house property income; b) Deleting the addition made u/s 69C of the Act relating to purchases. 4. We have heard the parties and perused the records. The assessee is a wholesaler in hardware items. He filed his return of income for the year under consideration declaring a total income of Rs. 14.06 lakhs. However, the AO computed the total income at Rs. 70.50 lakhs. In the appellate proceedings, the assessee got partial relief and hence both the parties are in appeal before us in respect of the issues cited above. 5. We shall first....
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....cision rendered by Authority for Advance Ruling in the case of M/s SKF Boilers and Driers Pvt.Ltd. The ld.CIT(A) also confirmed the same. 6. Before us, the ld. AR placed reliance on the decision of Mumbai Bench of the Tribunal in the case of M/s Indo Industries Limited V/s ITO in ITA No.183/Mum/2014 (AY-2010-11) dated 14.11.2014, wherein the Tribunal has held that commission paid to the agents located outside India does not require deduction of tax at source. We notice that the coordinate Bench of the Tribunal has followed the decision rendered by the Hon'ble Delhi High Court in the case of EON Technology Pvt Ltd (343 ITR 366) (Del) and also the decision rendered by the Hon'ble Supreme Court in the case of GE India Technology Centre Privat....
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....e afresh by considering about the applicability of the decisions referred supra to the facts prevailing in the instant case. The assessee is also directed to furnish all the details relating to expenditure that may be called by the AO. 8. The issue relating to charging of interest under the provision of the Act is consequential in nature and the issue relating to initiation of penalty proceedings is premature and hence they do not require any adjudication at this juncture. 9. In the appeal by the Revenue, the first issue relates to the allowance of interest of Rs. 1,50,000/- claimed by the assessee against the House property income. The assessment order shows that the assessee has agreed for the disallowance of the interest so claimed, si....
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....al before the Tribunal. 12. The ld. DR strongly placed reliance on the order of Assessing Officer. 13. On the other hand, the ld. AR submitted that the additions made in the case of some other assesses on identical reasons have been deleted by the Co-ordinate Benches of the Tribunal in the following cases : a) Ramesh Kumar and Co V/s ACIT in ITA No.2959/Mum/2014 (AY-2010-11) dated 28.11.2014; b) DCIT V/s Shri Rajeev G Kalathil in ITA No.6727/Mum/2012 (AY-2009-10) dated 20.8.2014; and c) Shri Ganpatraj A Sanghavi V/s ACIT in ITA No. 2826/Mum/2013 (AY-2009-10) dated 5.11.2014 In all the above said cases, the Co-ordinate Benches of the Tribunal has held that the AO was not justified in making the addition on the basis of statements given....