Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 1844 - AT - Income TaxIncome accrued in India - payment of commission to non-resident is taxable in India in view of the provisions of Sec. 9(1)(i) - income of the non-resident by way of payment of commission - HELD THAT:- Respectfully following the decisions of the co-ordinate bench of this Tribunal in the cases of Exotic Fruits (P) Ltd (2013 (10) TMI 826 - ITAT BANGALORE); and Puma Sports India Pvt. Ltd. (supra); we also hold that the income of the non-resident, ‘A V & Sons’ by way of payment of commission in the case on hand cannot be considered as being accrued or arisen or deemed to accrue or arise in India as the services were rendered outside India and the commission was also paid outside India. We also hold that in the absence of permanent establishment of ‘A V & Sons’ in India, the income of the said agent is not exigible to tax in India. Therefore, the assessee was not obliged to effect any deduction of tax on the commission payment to the agent ‘A V & Sons’, who is stationed outside India. We, therefore, reverse the findings of the authorities below in this regard and allow the grounds raised in the appeal by the assessee.
|