आयकर अपीलीय अिधकरण , चਔीगढ़ (cid:586)ायपीठ “बी” , चਔीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE ঒ी राजपाल यादव, उपा(cid:559)঴ एवं ঒ी कृ णव(cid:566) सहाय, लेखा सद(cid:735)

BEFORE: SHRI. RAJPAL YADAV, VP & SHRI. KRINWANT SAHAY, AM आयकर अपील सं ./ ITA No. 343 /Chd/ 2019 िनधा१रण वष१ / Assessment Years : 2013-14 M/s Orbit Resorts Limited बनाम The DCIT H.No. 256, Sector 9C, Circle 1(1), Chandigarh Chandigarh (cid:725)ायी लेखा सं PAN NO: AAACO4024H ./

अपीलाथ५ Appellant ঋ(cid:529)थ५ Respondent / /

आयकर अपील सं ITA No. 988 /Chd/ 2019 ./

िनधा१रण वष१ Assessment Years : 2014-15 /

M/s Orbit Resorts Limited बनाम The DCIT H.No. 256, Sector 9C, Circle 1(1), Chandigarh Chandigarh (cid:725)ायी लेखा सं PAN NO: AAACO4024H ./

अपीलाथ५ Appellant ঋ(cid:529)थ५ Respondent / /

िनधा१ौरती की ओर से Assessee by : Shri Aditya Kumar, C.A /

राज(cid:738) की ओर से Revenue by : Dr. Ranjit Kaur, Addl. CIT, Sr. DR /

सुनवाई की तारीख Date of Hearing : 13/08/2025 /

उदघोषणा की तारीख Date of Pronouncement : 16/10/2025 /

आदेश Order /

PER KRINWANT SAHAY, AM:

These are two appeals filed by the Assessee against the separate orders of the Ld. CIT(A)-1, Chandigarh dt. 11/01/2019 and 03/04/2019 respectively.

2. Since the facts involved in both the above appeals are common and appeals were heard together therefore they are being disposed off by this consolidated order for the sake of convenience.

3. Firstly we shall take appeal of the Assessee in ITA No.

343/Chd/2019 for the A.Y. 2013-14 as a lead case for discussion.

4. In the present appeal Assessee has raised the following grounds:

1. That the order passed under section 250(6) by the Ld. Commissioner of Income Tax (Appeals)-I, Chandigarh in Appeal No. 12/16-17 dt. 11/01/2019 is contrary to law and facts of the case.

2. That in the facts and circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) gravelly erred in upholding the disallowance Rs. 80,93,988/- made by the Ld. Assessing Officer by disallowing the commission paid abroad by invoking the provisions of Section 40(a)(i) of the Income Tax Act, 1961.

3. That the appellant craves to add, amend or alter any ground of appeal before or at the time of hearing of appeal, with the permission of the Hon’ble Income Tax Appellate Tribunal.

5. Briefly the facts of the case are that M/s Orbit Resorts Pvt. Ltd., based in Chandigarh, filed its return declaring losses of Rs.3,29,41,29,614/- for AY 2012–13. The company was engaged in the hospitality business, operating luxury hotels such as The Oberoi and Trident, Gurgaon. Thereafter the case of the assessee was selected for scrutiny under section 143(3) of the Income Tax Act, 1961.

5.1 The Learned Assessing Officer has discussed the addition at pages 27 of the assessment order wherein the Learned Assessing Officer has started his observation at page 26, para 4.6, wherein it has been mentioned that the assessee has produced only two agreements out of the many foreign entities mentioned above.

However, these two agreements show that it is not a commission for merely referring the customer living abroad. As per the agreement with the Trust International, It is the responsibility of the assessee company to take all measures to support and obtain any necessary equipment and authorization to enable Trust to perform the services on behalf of the client. The Ld. AO goes on to say that "It is therefore clear from the contract that the payment which is being made in the name of the commission, expenses actually fees for technical services. All the services provided by the foreign entities are based upon their expertise and the customer data. The assessee has utilized these services for business propagation and increasing profitability."

5.2 He further goes on to observe that since these services were found to be in the nature of FTS, the assessor was asked to explain whether any TDS has not been deducted on it.

5.3 In response, the assessee stated that no TDS has been deducted on the payments