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Assessee has raised the ground that having regard to the facts and circumstances of thecase, Ld. CIT(A) has erred in law and on facts in not deleting the disallowance made by Ld. AO amounting to Rs. 39,70,224/- (i.e. 30% of Rs. 1,32,34,080/-) on account of commission paid to M/s. Taiyo Enterprises Inc. (NRI) and has erred in enhancing the disallowance by Rs. 92,63,856/- by wrongly observing the commission receipts in the hands of TEI as fee for technical services u/s 9(1)(vii) of the Act read with explanation 2 and further erred in applying the provisions of section 195 and that too without any basis and by recording incorrect facts and findings and without appreciating the facts and circumstances of thecaseand in violation of principles of natural justice and without considering the submission filed by the assessee.

Shanti Prime Publication Pvt. Ltd.

Sec. 195 of Income Tax Act, 1961— TDS — AO as well as CIT (A) have merely made addition on the basis of conjectures and surmises because no evidence whatsoever has been brought on record if TEI was having any managerial or technical expertise to provide technical services to the assessee company apart from procuring orders for the assessee company on commission basis as per MOU, so, the AO/CIT (A) have erred in making disallowance / enhancing the disallowance u/s 40(a)(i) of entire commission which is not sustainable in the eyes of law, hence ordered to be deleted, consequently, the appeal filed by the assessee stands allowed. - DIGI DRIVES PT. LTD. V/s ASSTT. CIT - [2020] 28 ITCD Online 076 (ITAT-DELHI)