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2013 (7) TMI 951 - AT - Income TaxTDS u/s 195 - Disallowance of overseas agents commission paid without deducting tax at source - Held that:- It is not disputed that assessee had produced declarations from the concerned agents stating that they were not having any establishment in India. It seems Assessing Officer disbelieved such declaration for a reason that it did not have a government authentication. In our opinion, there is no such requirement under the Act. When assessee had obtained confirmation from the non-resident agents that they were not having any establishment in India, it could be disbelieved only if there were any circumstances, which would negate such assertion. In any case, there is no dispute that the agents were canvassing sales for the assessee for customers abroad. Assessee had every reason to hold a bona fide belief that the payments made to the non-resident were not chargeable to tax under the provisions of the Act. It could not be fastened with consequences arising out of a non-deduction of any such tax. - Decided in favour of assessee
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