TMI Blog2015 (5) TMI 1180X X X X Extracts X X X X X X X X Extracts X X X X ..... dent for the services rendered outside India as was held in the case of Dr. Reddy’s Laboratory [1995 (12) TMI 93 - ITAT HYDERABAD-A] - Decided in favour of assessee. - I.T.A. No. 1379/MUM/2015 - - - Dated:- 1-5-2015 - SHRI I.P. BANSAL, JM AND RAJENDRA, AM For The Appellant : Shri Bhupendra Shah For The Respondent : Shri Jitendra Kumar ORDER PER I.P.BANSAL, J.M: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se and in law the learned Commissioner of Income Tax (A) erred in confirming disallowance of Export Commission of ₹ 86,61,970/- u/s 40a(i) r.w.s. 195 made by Assessing Officer. 4) In the facts and circumstances of the case and in law, the learned Assessing Officer erred in charging interest u/s 234A,8 and C and also initiating penalty u/s 271 (1)(c). 2. During the course of hearing, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission to various nonresident foreign brokers amounting to ₹ 92,14,509/- for rendering services outside India in relation to export orders and recovery of the sale proceeds. Nothing was brought on record by the AO to establish that the said nonresident brokers have their place of establishment in India because they were operating in their respective countries. The said non-resident brokers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 456. There are also judicial pronouncements supporting this proposition, which are reported in 10 ITR 501(Trib), 86 ITD 102 and 10 ITR 147(Trib). 10. Payment of brokerage to the said non-resident brokers for non technical services is the business income of the payee and therefore, not liable to tax in India as was held in the case of Sri Subharaman Subramanian, 30 taxmann.com 236 (Bang.). W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to be taxed in India insofar as payment was made to non-resident for the services rendered outside India as was held in the case of Dr. Reddy s Laboratory, 58 ITD 104 (Hyd.). 12. In the result, appeal of the assessee is allowed. 3. In this view of the situation, after hearing both the parties, as the facts and circumstances are identical, respectfully following the aforementioned d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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