2015 (8) TMI 177

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....ent : Mr. Jagmohan Bansal, Adv ORDER S. J. Vazifdar, ACJ (Oral) 1. This is an appeal against the order of the Income Tax Appellate Tribunal upholding the order of the Commissioner of Income Tax (Appeals) deleting the addition made by the Assessing Officer on the ground that the respondent/assessee had failed to deduct tax at source as required under Section 195 of the Income tax Act, 1961....

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.... to justify the shortage in furnished product." 3. The assessee admittedly made payments to two agents, one in Turkey and the other in Mauritius, who were non-residents. The payments were remitted abroad directly. The CIT and the Tribunal set aside the order of the Assessing Officer in view of the circular No. 786 dated 07.02.2000 issued by the Central Board of Direct Taxes. The circular inter ....

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....tly abroad it cannot be held to have been received by or on behalf of the agent in India. Such payments were therefore held to be not taxable in India. The relevant sections, namely, section 5(2) and section 9 of the Income-tax Act, 1961, not having undergone any change in this regard, the clarification in Circular No. 23 still prevails. No tax is therefore deductible under Section 195 and consequ....