2005 (10) TMI 40

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....etc. The Assessing Officer found that the assessee had paid sole selling agency commission to the following persons as detailed below: Rs. EMDI Asia (P) Ltd., Singapore 1,78,379 EMDI Europe SA, Luxemborg  39,19,825 --------- Total 40,98,204 --------- The Assessing Officer found that in the earlier year M/s. EMDI was managed by a former employee and his wife. It has no infrastructure necessary to render the service. For the reasons discussed in the assessment for the earlier year, the claim was disallowed. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income-tax (Appeals). Before the Commissioner of Income-tax (Appeals), the assessee's representative contended that the r....

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....he commission paid to a foreign agency even though the Assessing Officer demonstrated in detail as to how the sole selling agencies which does not have any infrastructure facilities was a make believe arrangement with the former employee and the foreign selling agents have not done anything for export promotion over and above what was achieved by the assessee. It is further contended that the Tribunal has overlooked the fact that the Assessing Officer placed reliance upon many bills which were drawn in favour of the selling agents even though the goods having been shifted to different places and the details of the actual price for which the goods have been sold to the end buyers were not available on the invoices. Though learned standing c....