TaxTMI 
TaxTMI 
2019 (1) TMI 1400
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....rred in deleting the addition of Rs. 4,20,00/- made u/s 36(1)(iii) of the Act on account of loans given to the related parties/ corporate bodies without charging any interest. 2. Whether on the facts and circumstances of the case and in law, the ld CIT(A) erred in deleting the addition of Rs. 77110450/- made on account of non-deduction of TDS u/s 195 ignoring the fact that assessee had deducted TDS on part payment but not on balance payment." 3. Brief facts of the case shows that assessee is a company engaged in the business of production and trading of milk products. It filed its return of income on 13/10/2010 declaring income of Rs. 4539180/-. During the course of assessment proceedings two disallowances were made which are be....
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....expenses against the taxable income. He further stated that the source of the advance of INR 8,500,000 given to the related party on 28/6/2008 and on 6/8/2008 respectively. The appellant had sufficient own funds in the bank account and therefore the appellant has paid interest on borrowed funds which were for the purpose of the business and the interest free advances given to the sister concern were not out of the interest-bearing funds. 5. The learned departmental representative vehemently submitted that the assessee has paid huge interest and therefore the amount of advance given to the sister concern free of interest has rightly been taken by the learned AO as diverse of interest-bearing funds. Therefore, the interest was disallowed. ....
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....lated party. Accordingly, ground number 1 of the appeal of the revenue is dismissed. 8. The 2nd ground of appeal of revenue is with respect to the disallowance of rupees 77110450/- deleted by the learned CIT - A, on account of commission paid to a foreign party without deduction of tax at source. The learned assessing officer noted that the assessee has paid commission of INR 1 0787684/- whereas, in the immediate preceding year it was only INR 20 411259/-. During the year. The total sale of the assessee has been shown at INR 14 11 803429/- whereas, in the immediately preceding year it was INR 12 08904752 and there is a 15.09% increase in turnover during the year, whereas in respect of commission expenses, it has increased by 347.83 perce....
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....export sales is a commission to the dairy development Corp, Nepal. The learned CIT - A, held that the above recipient of the income was incorporated in Nepal and no services were rendered by that party in India. He further held that in absence of any article of taxation of fees for technical services and the commission income in the double taxation avoidance agreement between the two countries. The above income can only be taxed under article 7 as business profits. He further held that to tax the business profit in India. The recipient of income should have a permanent establishment. He further held that the services have been provided in Nepal for the purpose of export sale of the appellant's product to Dairy development Corp Nepal. He ....