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2014 (3) TMI 1015 - AT - Income TaxTDS u/s 195 - Non-deduction of tax at source on the commission paid overseas - disallowance under sec.40(a)(i) delted by CIT(A) - Held that:- CIT(A), whilst deleting the impugned addition u/s 40(a)(i) pertaining to overseas payments made by the assessee on account of commission, warehousing and other charges, has followed order of the 'tribunal' in assessee’s own case for assessment years 2005-06, 2006-07 and 2007-08 involving same issue concluding the foreign agent to whom the assessee had paid commission does not have any income liable for tax in India and as it is also noticed that the agent is not giving any services to the assessee in India for which the said commission has been paid, the disallowance made u/s 40a(i) being legally untenable. On being granted opportunity, the Revenue has failed to prove that these expenses are liable to be taxed in India as income in the hands of concerned payees or any services had been rendered in India. The Revenue submits that the 'tribunal's’ order has not been become final and its appeal is pending before the hon'ble high court. In our considered opinion, mere pendency of an appeal involving the same issue against the order of the 'tribunal' is no ground to adopt a different approach in the impugned assessment year. Thus, we agree with the findings of the CIT(A) under challenge and reject grounds raised by the Revenue. - Decided in favour of assessee
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