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2017 (5) TMI 1164 - HC - Income TaxTDS u/s 195 - Disallowance of commission payment to foreign agents - non deduction of tds - Held that:- Keeping in view the decision of my predecessor on the issue of payment of commission without deduction of tax which related to payment to one Dr. Paul Le Provost who has received during this year about ₹ 47.76 lakhs out of total 61.37 lakhs, hereby agree with the decision taken by him on this issue. As the commission paid to the other agents is on the same line as paid to Dr. Paul Le Provost and all the details regarding services rendered and also the business of the assessee being the same so the payment of commission cannot be held as in genuine as well as provisions of Section 40(a)(ia) are not attracted so the whole amount of commission does not attract provisions of Section 40(a)(ia) r.w.s. 195 of the Act. As a result the grounds dealing with this issue are allowed and the disallowance made by the Assessing Officer is deleted. - Decided in favour of assessee. Disallowance of commission to foreign agents u/s 37(1) - AO has disallowed as he found that the appellant has failed to furnish the details of services rendered for the appellant - Held that:- When the respondent – assessee had produced necessary documentary evidence in the form of confirmation letters of the commission paid to the foreign agents, necessary documents /invoices on which the commission have been paid have been produced and the commission has been paid through banking channel and with respect to the very foreign agents in the previous years the claim of the respondent – assessee had been accepted consistently, learned CIT(A) as well as the learned tribunal has rightly deleted the disallowance made by the Assessing Officer.- Decided in favour of assessee.
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