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2018 (7) TMI 1982 - AT - Income TaxTDS u/s 195 - payments of commission to non-resident agents who procured orders from parties situated outside India - case selected for scrutiny under CASS - main objection of the Assessing Officer while disallowing the impugned payment was that the foreign commission agents were allegedly rendering services to the assessee which were beyond the scope and definition of marketing agents - CIT-A deleted the addition - HELD THAT:- The commission received by the non-resident company for procuring product and rendering incidental services for purchases to the resident company was not taxable in India as ‘fees for technical services’. See ADIDAS SOURCING LTD. [2013 (1) TMI 106 - ITAT DELHI] . Whenever payments are made on account of commission for procuring sales orders, tax was not required to be deducted at source Assessing Officer was unable to bring any cogent material on record to establish that the non-resident commission agents had rendered any technical, consultancy or managerial services, are unable to take a view contrary to that of the Ld. CIT (A) who has given a categorical finding to this effect. We also note that the assessee had been making similar payments in earlier as well as subsequent assessment years which were accepted by the department in assessment orders framed u/s 143(3) of the Act and no adverse inference had been drawn by the department in this regard. Accordingly, we find no reason to interfere with the findings of the Ld. CIT (A) in this regard and we dismiss the grounds raised by the department.
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