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2019 (6) TMI 1649 - AT - Income TaxTDS u/s 195 - Disallowance u/s. 40(a)(i) and 40(a)(ia) in respect of payment being commission on export sales - HELD THAT:- As decided in own case on applicability of Expin-2 to Sec.195(1) of the Act which was introduced by the finance Act 2012 w e f 1- 4 -1962 we are of the view. That the said explanation is applicable only when there is accrual of income in India. When the conclusion reached is that there is no accrual of income in India, we fail to see how Expin,2 to Sec. 195 are attracted.There was no obligation on the part of the Assessee to deduct tax at source while making payment to the non-resident, Consequently, no disallowance of commission expenses paid to non-resident could be made invoking the provisions of sec. 40a)(1) of the Act. We hold accordingly and direct the AO to delete the disallowance so made - Decided against revenue.
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