AI Drafter 
TaxTMI 
TaxTMI 
2019 (4) TMI 2138
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....as raised the following grounds of appeal. "1. The order passed by the learned CIT(A) to the extent prejudicial to the appellant is bad in law and liable to be quashed. Ground relating to provision for non-moving/obsolescence stock 2. The learned CIT(A) has erred in confirming the disallowance of provision for non moving obsolete stock amounting to Rs. 19,11,000. 3. The learned CIT(A), Bengaluru to the extent prejudicial to the appellant has erred in not appreciating that: a. the provision for non-moving / obsolescence in stock was made as per the mandatory requirement under Accounting standard 2 (i.e. Valuation of inventories) prescribed by ICAI and Accountant Standard 1 prescribed by the Centra....
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....ce the payment did not constitute 'Fees for technical services' under section 9(1)(vii)(b) d. payments to non-resident agents were made for procuring orders which cannot be regarded as managerial, technical or consultancy services. e. Even otherwise, without prejudice, commission paid to non-residents were for the purpose of carrying business outside India or for earning income from sources outside India and consequently the impugned payments were outside the scope of section 9( 1)(vii) of the Act. 7. On facts and circumstances of the case and law applicable, no disallowance of commission of Rs. 6,42,000/- is to be made and deduction is to be fully allowed as claimed by the appellant. Prayer ....
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....reasons for provisions and disallowed the claim. 4. Similarly the Assessing Officer found that the assessee has entered into an agreement with the non-resident agents and has claimed the expenditure of export commission of Rs. 6,42,000/- and also no TDS was made. The Assessing Officer found that the assessee has entered into agreement with Pan Services Sas and Live Advanced Technologies Ltd. and after verifying the agreement and clauses the Assessing Officer is of the opinion that they are not at all agent or broker, as per the services being provided by them as Consultant and have agreed to place orders on behalf of the various customers, coordinate and check the quality of the goods ordered from the assessee. Therefore the Assessing Of....
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....e in para 3.1. The contention of the ld. AR that the assessee is following the valuation of the goods at cost or net realized value and submitted the paper book. The assessee is also entitled to write off the non-moving / obsolescence goods in the books of accounts. Similarly in respect of disallowance of commission for non-deduction of TDS on the payments made to non-residents, the ld. AR referred to the CIT(A) order and agreements at page no. 24 and the assessee has referred to the written submissions made before the CIT(A) at page no. 139 of the paper book where the payments made by the assessee are in the nature of commission and not for fee for technical services and relied on the judicial decisions and prayed for allowing the appeal. ....
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.... information for early disposal of the case. In the result, the grounds of appeal of the assessee is allowed for statistical purposes. 8. In respect of the second ground of appeal in respect of non-deduction of TDS on payments made to non-residents. The ld. AR submitted that the commission is paid outside the country and Agents only procure orders. But on the perusal of the CIT(A) order and also the submissions of the assessee in the course of hearing on 09.01.2017 we find the CIT(A) has considered the agreements of the non-residents and found that the commission is paid to the non-residents for procuring orders for the assessee to promote the products manufactured by the assessee, placing orders with the assessee on behalf of various cu....