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2014 (1) TMI 1863 - ITAT HYDERABADTDS u/s 195 - commission paid by the assessee to non-residents - Addition u/s 40(a)(i) - HELD THAT:- We have heard the arguments of both the parties and perused the record as well as gone through the orders of the authorities below. We find the similar issue came up before the Tribunal in assessee's own case for AY 2006-07 [2011 (8) TMI 1319 - ITAT HYDERABAD] commission payments and consequently the expenditure on export commission payable to non resident for services rendered outside India becomes allowable expenditure and the same is outside rigors of section 40(a)(ia). In the instant case, CIT(A) observed that the AO had not been able to establish that there was specific intention of the payee to receive the payment within the territory of India, therefore, the CIT(A) rightly did not agree with the view taken by the AO with regard to the addition made on this issue and the CIT(A) was justified in directing the assessing officer to delete the said addition. CIT(A) on this issue was not to be interfered with and, accordingly, the same was to be upheld. - Decided in favour of the assessee Also in AY 2008-09, when the revenue came in appeal to Tribunal on similar grounds in assessee's own case, the coordinate bench dismissed the appeal of the revenue following its decision in the case of M/S. DIVI’S LABORATORIES LTD., HYDERABAD. [2011 (3) TMI 1628 - ITAT HYDERABAD]
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