2013 (12) TMI 1664

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....d by the revenue with reference to the order passed by the Income Tax Appellate Tribunal, Cochin Bench in I.T.A.No.415/Coch/2011. 2. The issue involved in the above appeal is with reference to non-deduction of tax at the time of making payment to a foreign company as agency commission. The assessee entered into a contract for providing marketing support to win the contract for construction of b....

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....o have accrued in India and therefore the assessee was liable to deduct tax on such payments in the foreign country. The assessee preferred a further appeal before the Tribunal. The Tribunal found that the agency commission was payable in foreign exchange. Reference was made to Clause III, the responsibilities under the contract which reads as under: "Clause III Responsibilities ....

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....as income accrued in India and therefore no part of the income of M/s. Mozambique Holdings Ltd. in India is taxable under the Income Tax Act. The Tribunal referred to the judgment of the Supreme Court in GE Technology Centre (P.) Ltd. v. CIT [2010] 327 ITR 456 (SC) and found that the assessee is not liable to deduct tax since no part of the payment made to M/s. Mozambique Holdings Ltd. is liable t....

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.... Finance Act, 2008 with effect from 1st April 2008 and observed that since the provision has been brought into force only from 01/04/2008, it will not apply for the period prior to the same. It is based on the said view that the Tribunal came to a finding that the assessee is not liable to deduct tax with respect to the above transaction. 6. Delhi High Court also in CIT v. EON Technology (P.) L....