ITAT held that commission payments made by the assessee to...

ITAT held that commission payments made by the assessee to Bangladesh-based non-resident agents for services rendered wholly outside India did not accrue or arise in India and therefore were not taxable in India; accordingly, the assessee was not obliged to deduct tax at source under s.195. The Tribunal accepted treaty relief under s.90(2) insofar as the recipients were non-resident and their income was not taxable in India. The payments were also held not to constitute royalty or fees for technical services; inspection/checking activities carried out using software/technology were not transformable into royalty/FTS. Decision pronounced in favour of the assessee.