2011 (8) TMI 1319

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....e not applicable for payments of commission and professional charges 2. Whether the CIT(A) is right in holding that the provisions of section 40(a)(i) are not applicable for commission and professional charges paid by the assessee to non residents. 3. Whether the CIT(A) ought to have held that the payments relate to services utilised in India and therefore, the provisions of section 195 and section 40(a)(i) are applicable. 3. Brief facts of the issue are that during the course of assessment proceedings, the Assessing Officer found that the assessee had paid the following amounts to its commission agents as export sales commission: Date Name of the part Amount in Rs. 27.5.2005 Income I limited, Tanzania ....

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....er circulars issued by the CBDT had no assistance to the department, in any way in disallowing such expenditure. It appeared that an overseas agent of Indian exporter operated in his own country and no part of his income arises in India and his commission is usually remitted directly to him by way of TT or posting of cheques/demand drafts in India and, therefore, the same is not received by him on his behalf cases. Under these circumstances, withdrawal of earlier circulars issued by the CBDT had no assistance to the department in any way in disallowing such expenditure. It appeared that an overseas agent of Indian exporter operated in his own country and no part of his income arises in India and his commission is usually remitted directly t....