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2009 (7) TMI 836 - AT - Income TaxDeduction of tax at source (TDS) under section 194H or 194J - Assessee has entered into business transactions with the company “MMTC” for export - The assessee has routed the transaction of export through MMTC only because the assessee was not allowed to effect the export on account of Government regulations - Agent can act on behalf of the principal only in respect of those transactions which the principal is entitled to carry on directly without the assistance/help of the agent, i.e. even in the absence of an agent, the principal should be entitled to carry on the said transaction the assessee herein is not entitled to export the iron ore with Fe content of 64 per cent and above - Held that : it cannot be possible to say that the goods were exported by MMTC on behalf of the assessee on a principal to agent basis - The MMTC has exported the goods on its own and not on behalf of the assessee - By virtue of the Government regulations, both the companies had to reach an agreement with regard to the modalities of the incurring expenses and payment and in our opinion, the said modalities of payment are not the deciding factor to determine the nature of transaction - Issue in favour of the assessee - No TDS
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