TaxTMI 
TaxTMI 
2021 (6) TMI 703
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....even when these payments were made without obtaining no-deduction certificate u/s. 197 of the I.T. Act? 2. Whether the commission payments of Rs. 3,41,57,558/- made without TDS being deducted can be allowed to the agents who have business connection in India and are subject to tax deduction at source u/s. 195 of the Act? 3. Whether the commission payment of Rs. 1,31,995/- on which TDS is deducted can be allowed when the assessee has failed to prove genuineness of the transaction? Reliance is placed on the decision of Hon'ble Supreme Court in the case of CIT vs. Durga Dass More 82 ITR 540 and in the case of Sumati Dayal vs. CIT 214 ITR 801 (SC). 4. Whether the Ld.CIT(A) was correct in deleting the addition of R....
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....69, Circular No. 786 dated 7.02.2000 and further the decision of the Hon'ble Delhi High Court in the case of CIT Vs. Eon Technologies P. Ltd. (2012) 343 ITR 366 (Del). It was also stated that there is no permanent establishment of the foreign agents in India and, therefore, no tax is required to be deducted. 5. The Id. Assessing Officer rejected the contention of the assessee and relying on the ruling of Authority of Advance Rulings (AAR) dated 22.02.2012 in the case of S.K.F. Boilers and Driers Pvt. Ltd. (AAR No. 983-984 of 2010) as well as order of the Hon'ble Delhi High Court in the case of Van Oord ACZ India (P) Ltd. Vs. CIT 189 Taxman 232 held that the payment to the non-resident foreign agents is subject to tax deduction at....
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....o deleted the disallowance of commission payment of Rs. 1,31,995/- to the Indian party vide order dated 30th October, 2015 and, therefore, the Revenue is in appeal before us on this issue. 10. On both the above grounds the Id. DR relied upon the order of the Assessing Officer. 11. The Id. AR relied upon the order of the Id. CIT (Appeals). The Id. AR further referred to Circular No. 23 of 1969 : of 2000 and 7 of 2009 and submitted that Circular No. 7 of 2009 : dated 22.10.2009 wherein Circular No. 23 dated 23.07.1969 is withdrawn, he submitted it does not apply retrospectively. He further relied on the decision of Hon'ble Delhi High Court in the case of Angelique International Limited in ITA. No. 2018 of 2013 and 454 of 2013. He fu....
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....ars does not have any impact on taxability of export commission and TDS there on. In the present case It is an established fact that agents are nonresidents, operating their business activity outside India, commission payments is related to their service rendered outside India and Revenue could not show that those commission agents have any permanent establishment in India. Assessee has consistently denied that they do not have any permanent establishments in India. Further the commission was remitted to them directly outside India. 13. In view of this the issue is squarely covered in favor of the assessee that foreign commission paid to foreign agents no tax is required to be deducted under Section 195 of the Act and, therefore, disallo....