TaxTMI 
TaxTMI 
2017 (12) TMI 919
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....facts and circumstances of the case and at any rate is opposed to the principles of equity, natural justice and fair play. 2. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the order of the Assessing Officer is without jurisdiction. 3. For that the Commissioner of Income Tax (Appeals) erred in upholding the disallowance of commission paid to foreign agent amounting to Rs. 8,77,013/- u/s.40(a)(i). 4. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the provisions of section 40(a)(i) are not applicable in the facts and circumstances of the case. 5. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the requirement to deduct tax....
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....curing business for the assessee entirely abroad, on the ground that non-deduction of tax at source. 3.1 Aggrieved by the order of ld. Assessing Officer, the assessee carried the appeal before the Ld.CIT(A). On appeal, Ld.CIT(A) after going through the AO's Remand Report and following the decision of Co-ordinate Bench of Chennai Tribunal in the case of ACIT Vs. Euro Leder Fashions Ltd in 64 Taxmann.com 253(Chennai), confirmed the order of ld. Assessing Officer. Against the order of Ld.CIT(A), now the assessee is in appeal before us. 4. Before us, the ld. AR, further submitted that the services rendered by the non-resident agent could at best be called as a service for completion of the export commitment and would not fall within the d....
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....broad and the payments were also received by them abroad, therefore, no income would arise under the provisions of sec. 9(1) of the Act. 5. The Ld. DR submitted that the selling agent in this case though had rendered services abroad, was entitled to receive the commission for the services rendered to the assessee and received the amount through or from business connection which it had in India and source of income is in India. Being so, the income shall be deemed to accrue or arise in India. Since the source of income of the non-resident, who is the agent of the assessee, it earned commission from the business activity of the assessee and the assessee has not deducted TDS, it should be disallowed u/s. 40(a)(i) of the I.T. Act. The servic....
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....uctible at source. Therefore, the first condition required to be fulfilled is the payment must be chargeable under the Act, thereafter the question of deduction of tax will arise. Section 195 (1) of the Act also prescribes that tax has to be deducted while making payment to non-resident which is chargeable under the provisions of the Act. Therefore, the condition precedent for deduction of tax is the income must be chargeable under the provisions of the Act. 8. As seen from the orders of the lower authorities, the assessee has not discharged the burden cast upon it to show the nature of services rendered by non-resident agent. If there are services rendered by non-residents, who have no permanent establishment in India or have any busine....