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2018 (5) TMI 1742 - AT - Income TaxTDS u/s 195 - disallowance made on account of export commission paid to overseas agents u/s.40(a)(i) - Held that:- As decided in assessee's own case [2016 (9) TMI 107 - ITAT AHMEDABAD] For application of Section 195, it is sine qua non that the payment to no- resident must have an element of income liable to be taxed under the Indian Income Tax Act, 1961. On the facts of this case, as we have already concluded, no part of the remittance to the commission agent was taxable in India. The assessee was, therefore, not under any obligation, on the facts of this case, to deduct any tax at source from the commission payments to the non-residents. Since there was no obligation to deduct tax at source, the very foundation of impugned disallowance under section 40(a)(i) ceases to hold good in law. - Decided in favour of assessee
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