TaxTMI 
TaxTMI 
2021 (10) TMI 461
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....) & 35(1)(iv) of the Income-tax Act,1961 ['the Act' for short]. b) Disallowance of provision for commission. c) Non-setting off of brought forward losses and unabsorbed depreciation. d) Non-granting of refund. 3. The revenue is in appeal on the following issues:- a) Disallowance u/s 35(2AB) of the Act. b) Disallowance u/s 14A read with Rule 8D(ii) 4. The assessee is engaged in the design, development and manufacture of telecommunication equipments. 5. We shall take up the appeal filed by the assessee first. The first issue urged by the assessee relates to non-granting of deduction u/s 35(1)(i) & 35(1)(iv) of the Act. The Ld. A.R. submitted that the assessee did not claim the above said deductions in the return of income....
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....) 128 Taxmann.com 1, wherein it was held that the assessee can make fresh claim before appellate authorities even he has not filed revised return of income to make such a claim. 8. We heard the parties on this issue and perused the record. Before us, the Ld D.R contended that the assessee could make fresh claims only by filing revised return of income by placing reliance on the decision of Goetz India Ltd.(284 ITR 323). However, the Hon'ble Supreme Court, in the above said case, has specifically held that its decision will not impinge upon the powers of the Tribunal to admit additional claims. The Hon'ble Karnataka High Court has held in the case of Karnataka State Co-operative Federation Ltd (supra) that the assessee could raised fresh cl....
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....made pursuant to this Agreement are closed. Service fee shall become due to the Service Provider within thirty (30) days after TEJAS receives for immediate value from or on behalf of the Customer the Price where the relevant PO provides for payment of the Price by shall become due to the Service Provider as soon as such instalments are received for immediate value by TEJAS, that proportion being, equivalent to the proportion which such instalments bear to the total Price. The Ld. CIT(A), on a reading of highlighted portion of paragraph 3.3 of the agreement, took the view that service fee (commission) shall become due to the agent within 30 days after the assessee receives payment from its customers. The Ld CIT(A) noticed that, during the y....
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....assessee with Md. Ziaul Hassan Khan clearly shows that the commission shall become due only after receipt of money from the customers. Accordingly, she submitted that the Ld. CIT(A) was justified in confirming the disallowance of commission payments. 13. We heard the parties on this issue and perused the record. A careful perusal of first line of clause No.3.3 of the agreement entered by the assessee with Md. Ziaul Hassan Khan, which is extracted above, would show that "the assessee shall pay service fee (commission) to the agent after the sales made pursuant to this agreement are closed", i.e., the commission shall accrue after the sales is finalized. However, the same shall become due for payment only after receipt of money from the cust....
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....aimed by the assessee is allowable in the year under consideration. Accordingly, we set aside the order passed by Ld. CIT(A) on this issue and direct the A.O. to allow the commission expenditure claimed by the assessee. 15. The assessee has raised an alternative ground that if the commission expenditure is not allowed in this year, then A.O. should be directed to allow it in the year of payment. In view of the decision rendered by us in the preceding paragraph, this additional ground shall become infructuous. 16. The other issues urged by the assessee related to non setting off of brought forward losses and unabsorbed depreciation and also non-granting of refund. Both the issues require verification at the end of the A.O. Accordingly, we ....
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.... been dismissed. In the instant year, the AO has noted the judicial ruling referred above. However, the A.O. chose to disallow weighted deduction amount of Rs. 51,94,27,366/-(50% of Rs. 103,88,54,734/) in order to maintain consistency. 20. The Ld. CIT(A), deleted the disallowance of Rs. 51,94,27,366/- by following the decision rendered by Hon'ble High Court of Karnataka in the assessee's own case in writ petition No.7004/2014. The revenue is aggrieved by the decision of Ld. CIT(A). 21. We heard the parties on this issue and perused the record. The decision rendered by Hon'ble jurisdictional High Court is binding on all authorities below it. Since the Ld. CIT(A) has followed the decision rendered by jurisdictional High Court, we do not fin....