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2019 (8) TMI 306 - HC - Income TaxDisallowance of depreciation on non-compete fees - HELD THAT:- Rights acquired by the assessee under the said agreement not only give enduring benefit, protected the assessee’s business against competence, that too from a person who had closely worked with the assessee in the same business. The expression “or any other business or commercial rights of similar nature” used in Explanation 3 to subsection 32(1)(ii) is wide enough to include the present situation Disallowance u/s.40(a)(ia) for non deduction of tax on commission payable to foreign agents - HELD THAT:- As admitted facts are that the non-resident agents appointed by the assessee for procuring export orders do not have permanent establishment in India. Their agents are situated outside India. Their activities as commission agents are being carried out outside India. The Tribunal therefore correctly held that there was no liability on the assessee to deduct tax at source. Merely because a portion of the sale to the overseas purchasers took place in India, would not change situation vis a vis the commission agents. Relying on assessee own case [2018 (10) TMI 615 - GUJARAT HIGH COURT] . - Revenue appeal dismissed.
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