Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 1212 - AT - Income TaxTDS u/s 195 - disallowance of commission expenses under section 40(i) - commission paid to foreign agents - assessee was unable to produce evidences to prove the genuineness of such payments and also the factum of actual rendering of services by such recipients - CIT-A deleted the addition - HELD THAT:- As decided in own case [2016 (9) TMI 107 - ITAT AHMEDABAD] for application of Section 195, it is sine qua non that the payment to no-resident must have an element of income liable to be taxed under the Indian Income Tax Act, 1961. On the facts of this case, as we have already concluded, no part of the remittance to the commission agent was taxable in India. The assessee was, therefore, not under any obligation, on the facts of this case, to deduct any tax at source from the commission payments to the non-residents. Since there was no obligation to deduct tax at source, the very foundation of impugned disallowance under sect/on 40(a)(i) ceases to hold good in law. Learned CIT(A) was, therefore, quite justified in deleting the impugned disallowance. - Decided in favour of assessee.
|