2016 (3) TMI 1075

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....nces of the case and in law, the ITAT was justified in upholding disallowance u/s 40(a)(ia) in respect of non-deduction of tax at source on payments of commission to non-resident sales agents, when it was clear from the provisions of the Act as also Circulars issued by the CBDT that the relevant amounts were not chargeable to tax under the Income Tax Act, 1961, in the hands of the nonresident recipients? 3. Learned Counsel for the Appellant has pointed that the learned Tribunal has misconstrued the Explanation 2 to Section 195 of the Finance Act, 2012 inter alia, while coming to the conclusion that even in case in which the income of the non- resident is not chargeable to tax in India, the deduction at source would have to be made by the A....

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....n the other hand, Ms. Asha Desai, learned Counsel for the Respondents pointed out that the impugned order passed by the learned Tribunal is based on the decision passed by the co-ordinate Bench of the Tribunal and as such, according to her, there was no error committed by the Tribunal in remanding the matter to the Assessing Officer. Learned Counsel further pointed out that in view of the judgment of the Division Bench of this Court, no fault can be found in the impugned order as contended by the learned Counsel appearing for the Appellant. Learned Counsel further submits that the learned Tribunal has rightly come to the conclusion that irrespective of the fact that a non-resident is not liable to tax, such deduction has to be effected in r....