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2014 (2) TMI 1223 - AT - Income TaxDisallowance of commission - non deduction of tds - amount paid by the assessee to non-resident agents outside India for the services rendered by them outside India - Held that:- The assessee had made payments to commission agents located in foreign countries. These foreign agents have rendered services in their respective countries and had received the commission. It is also evident that the foreign agents did not have any PE in India and there was nothing brought on record to show that the agreements between the assessee & the commission agents were entered in India. In these circumstance the decision rendered in the case of Toshoku Ltd. (1980 (8) TMI 2 - SUPREME Court ) is squarely applicable wherein held that the commission agents, who are engaged in the services executed outside India, cannot be considered to carry on any business operations in India and therefore, provisions of section 9(1)(i) of the Act and Explanation-1A will not be applicable. Similarly, in the case of GE India Technology Cen. (P.) Ltd (2010 (9) TMI 7 - SUPREME COURT OF INDIA) has held that the expression "chargeable under the provisions of the Act in Sec.195(1)" shows that the remittance has to be of trading receipt, the whole or part of which, is liable to tax in India. If tax is not so assessable, there is no question of tax at source being deducted. - Decided in favour of assessee
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