2019 (3) TMI 1926

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....t sales as fee for technical services u/s 9 (1)(vii)." 3. The assessee is a Hindu Undivided Family ('HUF') and is engaged in the business of export of leather footwear mainly in France under the name and style of M/s. Regency Impex. The assessee appointed M/s Ace Trading Company, France (ACE Trading), a non-resident of India as its agent in France for assistance in procuring export orders for the assessee in France. For such services to be provided by ACE Trading to the assessee, vide Agreement dated 01.4.2009, the assessee agreed to give 8% commission FOB Mumbai on sales to parties introduced by ACE in France for the period 01.4.2009 to 31.3.2010. In terms of the said Agreement, the assessee paid commission of Rs. 88,15,790/- for t....

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....AA with France. Accordingly, it was held that the said amount of commission of Rs. 88,15,790/- is liable to TDS u/s 195 and disallowed the same by invoking provisions of section 40(a)(i) as no TDS was deducted thereon. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) after considering the submissions of the assessee supported by documents filed and settled legal position based on judicial precedents, held that the said commission paid to foreign agent for procurement of export orders is in the nature of business income of the foreign agent and not FTS, thus not liable to TDS and deleted the addition, thereby allowing the appeal of the assessee. 5. The Ld. DR submitted that the CIT(A) ....