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2015 (10) TMI 2039 - AT - Income TaxNon deduction of tax from salary paid to foreign sales personnel - Held that:- Where the employee discharges his duties outside India and his stay is beyond the prescribed limit to term him resident, the income earned earned upon such discharge of duties outside India would not be within the ambit of term has accrued in India and is deemed to have accrued in India. Therefore, would not be taxable in India. Admittedly, if any income which is not taxable in India, would not be liable for tax. In the case in hand, admittedly two of the employees of th appellant worked outside India and were NRI. Therefore, in the light of judgment of Hon’ble Karntaka High Court in the case of DIT (Int.Taxn.) Vs. Prahlad Vijendra Rao (2010 (11) TMI 803 - Karnataka High Court), the amount of salary paid to such employees would not be taxable in India. The Revenue has not brought to our notice any contrary binding precedent. Therefore, the disallowance of expenditure towards payment of salaries to remaining two employees, is hereby deleted - Decided in favour of assessee. Disallowance of bad debts written off - Held that:- There is no dispute with regard to the finding that the payment were made in the regular course of business. There is no finding of the authorities below that the payment were not related to the business of the assessee. Under these facts, except in the case of QCS, where the assessee itself has admitted that no invoice was issued, the authorities below were not justified in disallowing the claim of the assessee. Therefore, we hereby direct the AO to delete the disallowance except in the case of QCS. The disallowance to the extent of ₹ 1,52,837/- is confirmed and rest of the amount is deleted. - Decided partly in favour of assessee.
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