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2017 (10) TMI 57 - AT - Income TaxRevision u/s 263 - commission paid to the non-resident for rendering services outside India is taxable in India - Held that:- On this aspect of the matter, the Division Bench of this Tribunal in the case of DCIT vs. Welspun Corp Ltd [2017 (1) TMI 1084 - ITAT AHMEDABAD] has taken a view in favour of the assessee and has concluded that the payment of commission for services rendered in India is not taxable in the hands of the non-resident recipients of such commission. When this fact was pointed out to the ld. CIT-DR, he did not have much to say except for placing reliance on the stand taken by the learned Commissioner in the impugned order. The stand of the Commissioner in the impugned appeal is incorrect and does not meet our approval. We, therefore, hold that the Commissioner was not justified in invoking his powers under Section 263 of the Act on the basis of his understanding that commission paid to non-resident even for services rendered outside India is taxable in India. The very foundation of the impugned order is devoid of legally sustainable basis. The impugned order is thus quashed and the assessee gets the relief accordingly. - Decided in favour of assessee.
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