2012 (6) TMI 886

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.... 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 which no TDS had been made, when the assessee was not....

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.... 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. Such payments were therefore held to be not taxable in Ind....