TMI Blog2014 (9) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... services rendered by the non-resident agent can at best be called as a service for completion of the export commitment and would not fall within the definition of fees for technical services - Section 9 of the Act is not applicable to the case, Section 195 of the Act does not come into play - The services rendered by the non-resident agent can at best be called as a service for completion of the export commitment and would not fall within the definition of fees for technical services and, Section 9 of the Act is not applicable and Section 195 of the Act does not come into play – Decided against Revenue. - T. C. (A). No. 402 of 2014 - - - Dated:- 25-8-2014 - R. Sudhakar And G. M. Akbar Ali,JJ. For the Appellant : Mr. T. R. Senthilk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the facts that the assessee, in order to sell its products, has only appointed agents on sales commission basis in various countries and such agent is a link between the foreign buyer and the assessee and they do not have any permanent establishment or place of business in India, and after referring to the decisions of the Co-ordinate Bench of the Tribunal in the case of ACIT v. Eagle Press (P) Ltd., I.T.A.No.776/Mds/2008, dated 6.6.2011; Prakash Impex v. ACIT, I.T.A.No.08/Mds/2012, dated 30.3.2012; and ACIT v. Farida Shoes Private Ltd., I.T.A.No.359/Mds/2013, dated 11.4.2013, came to hold that the provisions of Sections 195 and 9 of the Act relating to deduction of tax at source on payments made to foreign parties and levy of tax on paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing a transaction where tobacco was exported to Japan and France and sold through non-resident assessees who were paid commission, held as under: '8. The second aspect of the same question is whether the commission amounts credited in the books of the statutory agent can be treated as incomes accrued, arisen, or deemed to have accrued or arisen in India to the non-resident assessees during the relevant year. This takes us to s. 9 of the Act. It is urged that the commission amounts should be treated as incomes deemed to have accrued or arisen in India as they, according to the department, had either accrued or arisen through and from the business connection in India that existed between the non-resident assessees and the statutory agent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeds of tobacco remitted or caused to be remitted by the purchasers from abroad does not amount to an operation carried out by the assessees in India as contemplated by cl. (a) of the Explanation to s. 9(1)(i) of the Act. The commission amounts which were earned by the non-resident assessees for services rendered outside India cannot, therefore, be deemed to be incomes which have either accrued or arisen in India. The High Court was, therefore, right in answering the question against the department.' 11. The facts of the present case are akin to the facts of the decision in Toshoku Limited case, referred supra. In the instant case also the assessee engaged the services of non-resident agent to procure export orders and paid commission. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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