2012 (6) TMI 886

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....Per : HONOURABLE MR.JUSTICE V. M. SAHAI) We have heard Mrs. Mauna M. Bhatt, learned counsel for the Revenue in this Tax Appeal. 2. This appeal has been filed by proposing the following substantial question of law: "Whether the Appellate Tribunal was right in upholding the CIT(A)'s order deleting the disallowance of commission payments to non-resident foreign agents/parties on wh....

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....hrough the orders of the AO and the CIT(A). We find that the learned CIT(A) has followed CBDT Circular N.23, dated 23-07-1996, wherein it has been clarified that where the non resident agent operates outside the country, no part of his income arises in India. Further since, the payment is usually remitted directly abroad it cannot be held to have been received by or on behalf of the agent in India....