TaxTMI 
TaxTMI 
2019 (8) TMI 352
X X X X Extracts X X X X
X X X X Extracts X X X X
.... processing machines, filed its return for Assessment Year 2011-12 on 28.11.2011 and subsequently a revised return of income on 24.08.2012 declaring income of Rs. 11,82,67,813/-. The case was taken up for scrutiny for this Assessment Year and the assessment was concluded under section 143(3) of the Income Tax Act, 1961 (in short 'the Act') vide order dated 23.03.2015 wherein the assessee's income was determined at Rs. 26,49,55,970/-. The assessee's appeal was disposed off by the CIT(A)-1, Bangalore vide order dated 31.08.2015. 3. Aggrieved by the order of CIT(A)-1, Bangalore, dated 31.08.2017, for Assessment Year 2011-12, the assessee has preferred this appeal before the Tribunal, wherein it has raised the following grounds:- 4. Ground No....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... under consideration. In the order of assessment, the AO made disallowance of Rs. 9,28,747/- under section 14A r.w.r. 8D(2)(iii)). On appeal, the CIT(A) upheld the aforesaid disallowance u/s 14A r.w.r. 8D. Before us, the assessee / learned AR were unable to controvert the orders of the authorities below to support its claim that no disallowance was called for u/R 8D(2)(iii) and therefore the following alternate argument was put forth by the learned AR. According to the learned AR, the alternate argument of the assessee is that disallowance under section 14A of the Act cannot exceed the exempt income earned by the assessee. In this regard, the Hon'ble Delhi High Court in the case of Joint Investments (P) Ltd., Vs. CIT (372 ITR 694) has taken....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ts. The learned AR contended that the said payments were not chargeable to tax under charging sections 4, 5 and 9 of the Act since no part of the income arises in India or is received by it / on its behalf in India or is deemed to accrue or arise in India. According to the learned AR, since the agency activity of 'A V & Sons' was rendered outside India and payments were made outside India, therefore the said commission payments to 'A V & Sons' cannot be said to be taxable in India. It is contended that since no income accrues or arises in India or is deemed to accrue or arise in terms of section 5 r.w.s. 9(1)(i) of the Act, the aforesaid commission payments to 'AV & Sons' is not subject to the provisions for withholding tax thereon. In supp....