https://www.taxtmi.com/caselaws?id=239130 Commission paid to foreign agents for overseas business services was treated as not chargeable to tax in India where the agents did not render technical services or make available technical knowledge. The assessee relied on CBDT Circular No. 786 prevailing at the time of payment and acted under a bona fide belief that no tax was deductible at source; the later withdrawal circular was not applied to those payments, and promissory estoppel was noted. As the commission was earned outside India in the course of business carried on outside India, section 9(1)(vii) did not apply and the retrospective amendment in section 9(2) did not change the position. Accordingly, disallowance under section 40(a)(i) was not justified. en-us Thu, 29 Aug 2013 00:00:00 +0530 Thu, 07 Nov 2013 07:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=239130 Commission paid to foreign agents for overseas business services was treated as not chargeable to tax in India where the agents did not render technical services or make available technical knowledge. The assessee relied on CBDT Circular No. 786 prevailing at the time of payment and acted under a bona fide belief that no tax was deductible at source; the later withdrawal circular was not applied to those payments, and promissory estoppel was noted. As the commission was earned outside India in the course of business carried on outside India, section 9(1)(vii) did not apply and the retrospective amendment in section 9(2) did not change the position. Accordingly, disallowance under section 40(a)(i) was not justified. Case-Laws Income Tax Thu, 29 Aug 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=239130