2017 (5) TMI 681

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....sed. 3. The only other surviving issue raised in ground no.2 of ITA No.7725/Mum/2014 and the only issue in ITA No.7213/Mum/2014 relates to disallowance of foreign agency commission claimed by the assessee. 4. Briefly the facts which are more or less common in both the assessment years are, the assessee stated to be engaged in export of paper products through proprietary concern M/s Marisa International. As appears from record, for assessment year 2009-10, the assessee filed her return of income on 29.9.2009 declaring a total income of Rs. 81,52,650/- and the assessment was completed u/s 143(3) of the Income Tax Act, 1961 accepting the returned income. For the assessment year 2010-11, the assessee filed her return of income on 25.9.2010 by....

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....vices were rendered by the foreign agency. On the basis of information relating to foreign agency commission obtained in assessment year 2010-11, the Assessing Officer reopened the assessment for AY 2009-10. In course of assessment proceedings for assessment year 2009-10, the AO, as it appears, came across the information received under exchange of information Article of Indo-USA DTAA on the genuineness of the foreign agency commission paid by the assessee to M/s ShoreChem LLC. From the information received, the AO found that M/s ShoreChem LLC denied of having received any commission from the assessee. On the basis of information/material available on record, the AO disallowed the assessee's claim of foreign agency commission of Rs. 97,31,9....

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....at since the departmental authorities did not ask for the evidences during the proceedings before them the assessee could not submit earlier. He, therefore requested for admission of additional evidence. He also referred to the ledger copy wherein commission payable from 1.4.2005 to 31.3.2012 appear. The ld.AR submitted, a copy of email was also produced before the AO wherein a Member of M/s ShoreChem LLC has acknowledged commission payment. Thus, the ld.AR submitted, the matter may be remitted to the AO for verifying assessee's claim on the basis of additional evidences produced. 6. The ld. DR strongly objecting to the admission of additional evidence submitted that the assessee has not shown justifiable reasons which prevented her from f....

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.... of M/s ShoreChem LLC introduced M/s Marisa International and its Principal for better business. He has stated that M/s ShoreChem LLC set up the meeting between the assessee and M/s CPP International and other customers in USA for helping M/s Marisa International for understanding market and retailers needs. From the said information of certified public accountant it is also evident that the Principal of M/s ShoreChem LLC did offer help to the Principal of M/s Marisa International for its stationery business in USA. From the aforesaid facts it appears that there was some kind of dealing between the assessee (Proprietor of M/s Marisa International) and M/s ShoreChem LLC and its principal as well as M/s CPP International for export of paper p....