https://www.taxtmi.com/caselaws?id=763410 The Rajasthan HC ruled in favor of the assessee regarding TDS provisions under Section 195 and addition under Section 40(a)(ia) for commission payments. The court held that commissions paid for services rendered outside India are not chargeable under the Income Tax Act, as such income does not accrue or arise in India per Section 9(1)(i). Since the Assessment Officer accepted that services were performed outside India, Section 195 provisions were inapplicable, making the proceedings without jurisdiction. The court rejected the department's argument about rectifying mistakes, noting the original allowance was based on proper adjudication. The impugned notice, rejection of preliminary objections, and consequential reassessment proceedings were quashed, allowing the assessee's appeal. en-us Fri, 13 Dec 2024 00:00:00 +0530 Wed, 18 Dec 2024 21:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763410 The Rajasthan HC ruled in favor of the assessee regarding TDS provisions under Section 195 and addition under Section 40(a)(ia) for commission payments. The court held that commissions paid for services rendered outside India are not chargeable under the Income Tax Act, as such income does not accrue or arise in India per Section 9(1)(i). Since the Assessment Officer accepted that services were performed outside India, Section 195 provisions were inapplicable, making the proceedings without jurisdiction. The court rejected the department's argument about rectifying mistakes, noting the original allowance was based on proper adjudication. The impugned notice, rejection of preliminary objections, and consequential reassessment proceedings were quashed, allowing the assessee's appeal. Case-Laws Income Tax Fri, 13 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763410