TaxTMI 
TaxTMI 
2018 (11) TMI 991
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....passed by the CIT(A) in deleting the disallowance of Rs. 55,23,900/- made by the AO on account of commission payment in foreign currency. 2. The assessee-company at the relevant time was engaged in the business of manufacturing of steel and sale of steel and its products, both domestic as well as export filed its return of income on 27.09.2011 declaring total income of Rs.NIL. The same was processed u/s.143(1) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). Upon scrutiny notice u/s.142(1) of the Act along with questionnaire was issued to the assessee. In fact, the assessee claimed expenditure of commission payment of Rs. 55,23,900/- in foreign currency. It appears that the assessee has not deducted tax at source on such....
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....f the I.T. Act came into force for deducting TDS on foreign payments made by the resident assessee to non-resident agents only to the payments made to those nonresidents if their income is chargeable under the income tax law. He has also relied upon certain decisions passed by the Hon'ble Apex Court in this context. Further that since the assessee's case is covered by the decision of his predecessor in the earlier assessment years 2001-02, 2003-04, 2004-05, 2005-06, 2006-07, 2007-08, 2008-09 & 2009-10 following the same Ld. CIT(A) deleted such disallowance of commission to the tune of Rs. 55,23,900/- paid to the foreign agents by the assessee. 4. At the time of hearing of the instant application, the Ld. Representative of the assessee plac....
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....pun Corporation Ltd., 77 taxmann.com 165 (Ahd) has considered similar aspects elaborately. Facts of both these concerns are identical. They are also in similar products, and commission was paid to foreign agents. The AO sought to disallow on the ground that payment made by the assessee was a fee for technical services as per section 9 and even if the recipients are not having any PE in India or any other establishment then also their services are being used in India for supplying of the goods. Thus, the payment made to them, involved element of income and TDS ought to be deducted. This stand of the AO has not been approved by the CIT(A) as well as by the ITAT in the case of Welspun Corporation Ltd. (supra). The ld.counsel for the assessee p....
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....iness profile and the quality of the products of the assessee to the potential clients to convince them to enter into a contract with the assessee for supply of the pipes etc. and other allied works. * In order to perform the aforesaid highly technical activity, the assessee entered into a contract with foreign agents. In terms of the agreement, the agent was to develop, expand and promote the sales and marketing for assessee's products, make market plans and establish a marketing network of representatives to help and promote assessee's products, to provide information such as market development, activities of competitors, intentions and plans of clients and financial information on clients, to provide advanced information about ....
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....udgment, and thereafter concluded as under: "41. We are in considered agreement with the views so expressed by the coordinate bench. In view of these discussions, as also bearing in mind entirety of the case, we uphold well reasoning findings of the learned CIT(A) that the commission payments made to the non-resident agents did not have any taxability in India, even under the provisions of the domestic law i.e. Section 9. Once we come to the conclusion that the income embedded in these payments did not have any tax implications in India, no fault can be found in not deducting tax at source from these payments or, for that purpose, even not approaching the Assessing Officer for order under section 195. In our considered view, the assessee,....