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2020 (2) TMI 417 - AT - Income TaxDisallowance of loss on rate settlement (Contracts) - CIT(A) deleted the addition made by AO by accepting additional evidence without giving opportunity to the AO, which is in contravention of provisions of Rule 46A of IT Rule, 1962 - HELD THAT:- Issue is identical to that of A.Y. 2010-11 [2019 (3) TMI 1717 - ITAT DELHI] . In the present assessment year as well the additional evidence was before the CIT(A) and no remand report was called by the CIT(A). Thus, the CIT(A) has not followed Rule 46A of the Income Tax Rule, 1962 and has not called for remand report from the Assessing Officer to prove the revenue’s case. Therefore, it will be appropriate to restore this issue to the file of the Assessing Officer and assessee is directed to furnish all the necessary evidences before the Assessing Officer which the Assessing Officer will verify and decide the issue afresh. Needless to say the assessee be given opportunity of hearing by following principles of natural justice. Ground No.1 and 2 are partly allowed for statistical purposes. TDS u/s 195 - Whether non-residents have a PE and Back Office in India - HELD THAT:- AO has not brought on record to show that such nonresidents have a PE or not, in India. In fact, the services of the foreign agents are rendered by the assessee not to use in India but are used for sales outside India. Thus, the commission paid to the foreign agents for rendering services outside India does not come under the purview of Section 195 of the Income Tax Act, 1961. Thus, the CIT(A) was right in deleting the addition made u/s 40(a)(ia)
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