TaxTMI 
TaxTMI 
TaxTMI 
2019 (4) TMI 1375
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....0/04/2012 relevant to Assessment Year (AY) 2010-11. 2. The assessee has raised the following grounds of appeal. 1. In law and in the facts and circumstances of the case, the notice issued u/s 263 is void and without jurisdiction. 2. In law and in the facts and circumstances of the case the CIT- I has erred in holding that the assessment order passed by the Assessing Officer is erroneous as well as prejudicial to the interests of the revenue u/s 263 of the Act. 3. In law and in the facts and circumstances of the appellant's case, the learned CIT Vadodara - 1, has erred in passing order u/s. 263 and thereby setting aside the order of the AO u/s. 143(3) and directing the AC) to pass an order afresh merely on the ground that the asse....
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....n respect of issues pertaining to expenses debited in respect of product registration fees, provision for prior period expenses and incorrect computation of 8. The appellant craves leave 10 add. alter, amend and/or withdraw any ground or grounds of appeal either before or at the time of hearing of the appeal. 3. The solitary issue raised by the assessee is that Ld. CIT erred in holding the order of the AO u/s 143(3) of the Act as erroneous in so far prejudicial to the interest of the Revenue u/s 263 of the Act. 4. At the thresh hold, it was noticed that the order of the AO was proposed to be held as erroneous in so far prejudicial to the interest of the Revenue on account of the reasons detailed as under: 1. Out of the total commissio....
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....e Act dated 02/12/2014. 7. The assessee in compliance to it submitted that the commission agents were appointed only to procure the export orders from outside India. The assessee accordingly claimed that these commission agents had provided services outside India and therefore the same is not chargeable to tax in India. Accordingly, there can be no question of deducting TDS in respect of the income not chargeable to tax in India. 7.1 Similarly the Circular nos.786 dated 07/02/2000 and 23 dated 23/07/1969, the CBDT has withdrawn vide its Circular no.7 dated 22/10/2009, but there is no change in sections 5, 9 and 195 of the Act. Thus, there is no change in the legal provision as provided in the Circular no.786 and 23 issued by the CBDT. 7....
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....nd 2012-13 respectively. 10.2 The commission paid to the foreign parties were not chargeable to tax in India. Therefore there was no question of deducting the TDS u/s 195 of the Act. The AO framed these assessment orders after due application of mind. 11. On the other hand the Ld. DR, submitted that it is not clear whether the commission was paid to the same parties in the subsequent years. 11.1 There was no inquiry conducted by the AO, and it is settled law that the non-verification of certain facts will render the order of the AO as erroneous. 11.2 The Ld. DR, vehemently supported the order of ld. CIT. 12. We have heard the rival contentions and perused the materials available on record. The issue in the instant case relates to the o....
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....3) of the Act pertaining to the assessment 2011-12 and 2012-13. It is because the AO was not aware of the proceedings under section 263 of the Act while framing the assessment under section 143(3) of the Act. Therefore, we are not convinced with the argument of the learned counsel for the assessee. 12.3 Regarding the contention of the Ld. Counsel for the assessee that there was not initiated any proceedings under section 263/ 147 of the Act in respect of the assessments framed under section 143(3) of the Act pertaining to the assessment year 2011-12 and 2012-13, we find force in his argument. It is because the Revenue has admitted the claim of the assessee for the commission expenses to the foreign parties without deducting the TDS under s....