2014 (5) TMI 1072

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... Shaji P. Jacob, I.R.S. Addl.CIT For the Respondent: Shri. A.S. Sriraman, Advocate   O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER The appeal has been filed by the Revenue assailing the order of the Commissioner of Income Tax (Appeals)-II, Coimbatore, dated 01.11.2012 relevant to the assessment year 2007-08. The appeal is directed against deletion of disallowance u/s.40(a)(i) for ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the assessment order dated 16.12.2009, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). 3. The Commissioner of Income Tax (Appeals) vide impugned order deleted the disallowance made by the Assessing Officer and allowed the appeal of the assessee. Now, the Revenue has come in appeal assailing the findings of the Commissioner of Income Tax (Appeals). 4. Shri S....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n agent had not extended any technical services but had only procured export orders. The commission was paid by the assessee on various dates through banking channels for the services rendered outside India. The Commission has been remitted in foreign currency outside India. The findings of the Commissioner of Income Tax (Appeals) on the issue remain unrebutted. The Hon'ble Supreme Court in the ca....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....8D are applicable with effect from assessment year 2008-09 onwards. Thus, the provision of Rule 8D cannot be applied in the assessment year under appeal i.e. 2007-08. However, reasonable disallowance has to be made for earning tax free income. The assessee has made additional investment of F1.33 Crores during the relevant financial year. Even if the investment is made from own funds, the assessee ....