2018 (10) TMI 615

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....BLE MR.JUSTICE AKIL KURESHI) 1. Revenue is in appeal against the judgement of the Income Tax Appellate Tribunal dated 19.04.2018 raising following question for our consideration: "Whether the Appellate Tribunal has erred in law and on facts in deleting the addition of Rs. 18,80,876/- made on account of Commission paid to no-resident u/s. 40(a)(ia) of the Act?" 2. The issue arises in....

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....456 and contended that, in such a case, there was no liability to deduct tax at source. 3. The Assessing Officer did not accept such explanation and made the addition of entire amount in terms of section 40(a) (ia) of the Act. The assessee carried the matter in appeal. CIT(A) gave substantial relief to the assessee. All additions, barring commission payment of Rs. 18.80 lacs (rounded off) were ....

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.... 195 of the Act imposes requirement of deduction of tax at source on any person responsible for paying to a non-resident any sum chargeable under the provisions of the Act. The prime requirement therefore for applicability of the section is that the payment to the nonresident should be a sum chargeable under the provisions of the Act. In other words, the payment is not an income which is chargeabl....

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....operty in India or through or from any asset or source of Income in India or through the transfer of a capital asset situate in India shall be deemed to accrue or arise in India. 7. In the present case, as noted, admitted facts are that the nonresident agents appointed by the assessee for procuring export orders do not have permanent establishment in India. Their agents are situated outside Ind....