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2015 (6) TMI 1196 - AT - Income TaxTDS u/s 195 - non-deduction of TDS on payment of commission to Foreign Agent - place of business in India - CIT-A deleted the addition - HELD THAT:- Nothing has been brought on record by the Revenue in order to demolish the stand taken by the assessee and to establish that non-resident has ever rendered any technical services or consultancy or managerial services. Therefore, we are of the view that since the assessee has simply procured export orders through commission agent for which commission was paid, the assessee was not required to deduct tax at source on the commission paid to the foreign agent. Accordingly we confirm the order of the ld. CIT(A). - Decided in favour of assessee. Disallowance on ad-hoc basis - as alleged non pointing out any specific defect in the accounts of the assessee - CIT-A deleted the same for the reason that the AO has made ad-hoc disallowance - HELD THAT:- During the course of hearing before us, similar is the position, as the Revenue could not point out any specific defect in the maintenance of accounts under different heads. No doubt the Assessing Officer can make disallowance if the assessee fails to produce the relevant evidence with respect to any particular expenditure, but the disallowance on ad-hoc basis is not permissible under the law. We, therefore, find no merit in these grounds of appeal - Decided in favour of assessee.
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