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2019 (8) TMI 352 - AT - Income TaxDisallowance u/s 14A r.w.Rule 8D(2)(iii) - HELD THAT:- Hon’ble Delhi High Court in the case of Joint Investments (P) Ltd., Vs. CIT [2015 (3) TMI 155 - DELHI HIGH COURT] has taken the view that the disallowance u/s 14A cannot exceed the exempt income. Similar view has been expressed by the Hon’ble High Court in the case of CIT Vs. Holcim India Pvt. Ltd. [2014 (9) TMI 434 - DELHI HIGH COURT] . Respectfully following the aforesaid judicial pronouncements (supra), we hold that the disallowance u/s 14A in the case on hand should be restricted to the exempt dividend income earned by the assessee in the year under consideration. Disallowance u/s 40(a)(i) - TDS u/s 195 - payments of commission to foreign agents paid outside India for services rendered outside India - HELD THAT:- Respectfully following the aforesaid decision of the Co-ordinate Bench of this Tribunal in the assessee’s own case [2017 (11) TMI 1844 - ITAT BANGALORE] , we also hold that the payment of commission to non-resident agent ‘AV & Sons’ in the case on hand cannot be considered as having been accrued or arisen or deemed to accrue or arise in India as the services were rendered outside India and the payment of commission was also outside India. In this view of the matter, the assessee was not obliged to effect any deduction of tax on the commission payments to the foreign agent ‘AV & Sons’ who is stationed outside India. Short grant of credit in respect of TDS - assessee contends that the AO has not granted it TDS credit as reflected in the 26AS of the assessee - HELD THAT:- As contended above, we direct the AO to examine / verify the assessee’s claim that of short grant of credit for TDS to the extent of ₹ 2,68,927/- in accordance with law. Consequently, ground No.12 of assessee’s appeal is allowed for statistical purposes.
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