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2016 (2) TMI 1339 - AT - Income TaxTDS u/s 195 - Disallowance u/s 40(a)(ia) - services rendered and expenditure incurred is in the nature of commission - HELD THAT:- It is not in dispute that the assessee firm is engaged in the business of manufacturing and export of readymade garments and in connection with the exports, the assessee has incurred an amount. On perusal of the agreement with M/s Arjoo J. Ltd. the CIT(A) has given a clear finding that the services rendered and expenditure incurred is in the nature of commission. Given the fact that the commission has been paid in relation to export of garments outside India and the fact that the no services have been rendered in India we are unable to accede to the arguments of the ld. DR that the subject payments are taxable in India. Similar is the position in respect of payment to M. Ishikawa who has been paid commission in relation to export of garments as apparent from the agreement as well as working of the commission payments. Accordingly, provisions of section 195 are not attracted in the instant case, hence the disallowance of expenditure u/s 40(a)(i) is hereby deleted. - Decided in favour of assessee. Delayed employees contribution to PF and ESI - HELD THAT:- CIT(A) has given a categorical finding that the employees contribution to ESI and PF has been paid before filing of the return of income u/s 139(1) of the Act. In view of the consistent stand taken by this Bench and respectfully following the decision of the Hon’ble Rajasthan High Court in the case of State Bank of Bikaner & Jaipur.and others [2014 (5) TMI 222 - RAJASTHAN HIGH COURT] ground taken by the Revenue is dismissed .
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