TaxTMI 
TaxTMI 
2018 (10) TMI 2004
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....e assessee is engaged in as exporter and importer of sanitary wares & tiles and also wholesale trading of dry fruits and kirana items. The case was selected for scrutiny assessment and subsequently notice u/s 142(1) of the Act was issued on 10.12.2013. It was noticed by the Assessing Officer that during the assessment year the assessee had paid an amount of Rs. 12,809,361/- towards the commission to Shri Sanjay Mehata who was staying in Dubai. The Assessing Officer , after considering the reply of the assessee, had disallowed the commission paid by the assessee Shri Sanjay Mehata. On the pretext that TDS was not deducted by the assessed, at the tune of payment. 3. Being aggrieved by the order passed by the Assessing Officer, the assessee p....
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.... year are similar to the facts in earlier year decided by the co-ordinate bench in ITA no. 5806/D/2014 whereby the Tribunal in Paragraph 8 has recorded as under :- "8. We have heard both the parties and perused the material available on record. It is noted that the CIT(A) has given a detailed finding as to why the amount of RS. 1,19,51,774/- has to be deleted. To arrive at this finding, the CIT(A) has taken a cognizance of RBI's guidelines as well as CBDT Circular. At the time of hearing, it was pointed out by Ld. AR that the said Circular was withdrawn by the Department. All these aspects have been taken into consideration by the CIT(A). Besides this, the issue is also dealt by us in case of Divya Creation wherein we have held as under:-....
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.... Bench of the Tribunal in the case of Welspun Corporation Ltd. (supra). The Tribunal in the said decision has held that the payments made by the assessee for services rendered by non-resident agents could not be held to be fees for payment for technical services. These payments were in nature of commission earned from services rendered outside India which had no tax implications in India. The Tribunal while deciding the issue has also considered the two decisions of the AAR which has been relied on by the Assessing Officer as well as the CIT(A). 21. We find the ITon'ble Allahabad High Court in the case of Model Exims (supra) has held that failure to deduct tax at source from payment to nonresident agents, who has their own offices in....
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....d B debited his commission account and credited the amount of commission payable to the Japanese company in his account books and later remitted the amount to the Japanese company. There was a similar agreement with the French business house in relation to the corresponding area and similar credit and debit entries and subsequent remittance of the commission were made. The question was whether the commission earned by the non-resident sales agents could be taxed in India, treating B as representative assessee under s. 161 of the l.T. Act, 1961: Held, (i) that it could not be said that the making of the entries in the books of B amounted to receipt, actual or constructive, by the non-resident sales agents as the amounts so credited in thei....