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2015 (8) TMI 309 - AT - Income TaxDis-allowance u/s.40(a)(ia) - commission paid to overseas agents without deduction of tax - CIT(A) deleted disallowance - Held that:- FAA accepting the contentions of the assessee has given a categoric finding that the payments were made to overseas agents for the services rendered outside India in marketing of its products. The foreign agents have no PE in India and the remittances were made to them in foreign exchange through brokers. The Revenue has not been able to controvert the aforesaid findings. Since, the commissions paid to the overseas agents were not taxable in India, there was no question of deduction of tax at source u/s.195 on such payments. The Hon'ble Apex Court in the case of GE India Technology Cen. (P) Ltd., Vs. CIT (2010 (9) TMI 7 - SUPREME COURT OF INDIA) has held that if the remittances is not taxable in India, the question of deducting tax on the said amount does not arise. Also see CIT Vs. Faizan Shoes (P) Ltd., (2014 (8) TMI 170 - MADRAS HIGH COURT). No error in the findings of CIT(Appeals) on the issue - Decided in favour of assessee. Disallowance of expenditure on overhauling of windmills as ‘current repairs’ u/s.37(1) - CIT(A) deleted disallowance - Held that:- The fact that the expenditure has been incurred on overhauling of wind mill machinery has not been disputed by Revenue. It is equally un-disputed that with the overhauling of wind mill machinery, there is no change in the capacity or structure of the wind mill. The overhauling of wind mills was carried out to sustain their production efficiency. We are of the considered opinion that the expenditure on overhauling of windmills is allowable as revenue expenditure u/s.37(1) of the Act. Therefore, this ground of appeal of the Revenue is also dismissed.- Decided in favour of assessee.
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