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2015 (6) TMI 548 - AT - Income TaxDisallowance under section 40 (a)(i) - CIT(A) deleted disallowance - whether foreign agency commission paid by the assessee to the non residents/payee attracts disallowance under section 40 (a)(i) for non deduction of TDS? - Held that:- It transpires from the case file the assessee has paid foreign exchange commission to its non-resident agent who do not have any permanent establishment in India. There is no material to prove that these payment have arisen out of an agreement executed in India. Nor there is any evidence to conclude that the non-resident/payee has rendered any technical service to the assessee. The Revenue also fails to prove the payments to have been accrued, arisen or paid in India so as to make it taxable under provision of the Act. Thus we hold that the assessee was not liable to deduct TDS qua abovestated commission paid to its non resident payees. Accordingly, the CIT(A)'s findings stand affirmed. - Decided in favour of assessee.
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