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2019 (1) TMI 537 - AT - Income TaxDisallowance on account of provision of LTA (Leave Travel Allowance) - assessee is following the mercantile system of accounting - Held that:- It is preceding year as well as the succeeding year the claim of the appellant has been accepted. Considering the principle of consistency demands that the claim of the appellant should be accepted in this year also. Considering VINITEC CORPORATION PVT. LTD. and BHARAT EARTH MOVERS VERSUS COMMISSIONER OF INCOME-TAX [2000 (8) TMI 4 - SUPREME COURT] as the principle of consistency the claim of the assessee is accepted and addition on account of LTA. Disallowance on account of non-deduction of TDS on the payment made to M/s Graziano Transmission North America, USA holding the same as commission - the payment is actually in the nature of fee for technical services and the assessee only named the same as commission to enjoy the tax benefit - Held that:- We find that the agent is not providing any technical services to the assessee. The agent is acting only commission agent and procuring the orders for the assessee and to inform the assessee for any infringement of rights. Even if the same is considered as business income of the commission agent same is not taxable in India as the foreign entity does not have any PE or BC in India. The commission is being entertained in the foreign company in the foreign country. No part of its income accrue or arise in India. Nor it is making available any technical knowledge, experience, skill, knowhow etc. to the assessee. Hence, Ld. CIT(A) has rightly held that the case of the assessee is identical to the decision in the case of DIT vs. Guy Carpenter and Company Ltd.[2012 (5) TMI 31 - DELHI HIGH COURT]. - Decided against revenue.
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