The Commissioner Of Income Tax-21 v. Shri Chirag M. Bhakta

bsb IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 1073 OF 2012 The Commissioner of Income Tax-21 … Appellant v/s Shri Chirag M. Bhakta … Respondent Mr.Abhay Ahuja i/by D.K. Kamwal for the appellant.Mr.R.K. Hakani i/by P.S.Sarla for the respondent. CORAM: S.C. DHARMADHIKARI & G.S. KULKARNI, JJ. DATED : 6TH MARCH, 2014 P. C. : 1We have heard learned counsel for the appellant. 2We have perused the orders passed by the Income Tax Appellate Tribunal dated 24[th] August, 2011 and prior thereto of the Assistant Commissioner, Income Tax (Appeals). 3The revenue approached the Tribunal against the order of the Commissioner of Income Tax (Appeals) by urging that the said Commissioner has erred in deleting the disallowance made by the Assessing Officer under Section 40(a)(i) of commission payment of Rs.59,94,757/- to one Mahendra Singh Jamnadas for not deducting tax at source. The revenue pointed out that the commission payment was made for services rendered in India and hence Section 9 is squarely applicable. The commission payment has been made for services and which fall within the purview of the provision, namely,Explanation 2 under Section 9(1)(vii) of the Act. 4In dealing with this argument, the Tribunal, after perusal of the entire record including the agreement in question, pointed out that the assessee was paying similar commission in earlier years and there was no such disallowance. The issue of T.D.S. never arises as the said person has no permanent establishment in India. The amount was not taxable as the services were not rendered in India. In para 6 of the order passed by the Tribunal, it has referred to the appointment order and also the entire record. The nature of the services rendered have also been considered. It is in these circumstances that there was no conclusion that the matter does not fall within the purview of the Explanation 2 and as urged before us. These are matters fully covered by the same, that the services : 3 : rendered are of the nature, namely, looking after sales, credit- worthiness of buyers and overseeing the payment to assessee in the business of export of cycle and cycle parts. In such circumstances, the concurrent findings of fact are consistent with the material produced including the agreement. They do not give rise to any substantial question of law, much less, as framed in the present appeal. The appeal is, therefore, devoid of any merits and, therefore, stands dismissed. (G.S. KULKARNI, J.) (S.C.DHARMADHIKARI, J.)