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2021 (9) TMI 302 - HC - Income TaxTDS u/s 195 - Disallowance u/s 40(a)(i) - payments of export sales commission and service charges made to non-resident without deduction of tax at source - Indo South Korean DTAA - ITAT deleted the addition as affirming the order passed by the Commissioner of Income CIT(A) - whether in the instant case, the CIT(A) has recorded a finding as to the nature of services availed by the assessee from the non-resident.? - HELD THAT:- CIT(A) perused the copies of the agreement and on facts, found that the amounts paid by the assessee were sales commission and marketing services to non-resident agents outside India for their services rendered outside India by way of canvassing sales order and none of the entities to whom payments were made by the assessee have a Permanent Establishment [PE] in India. Further, taking note of the relevant Articles in the respective DTAA agreements entered into between India and the respective Country, it was held that the income earned is taxable in those Countries. First Appellate Authority and the Tribunal have held that what was paid by the assessee to the non-resident was sales commission and cannot be regarded as if for technical services - no question of law or substantial question of law arises for consideration. - Decided against revenue.
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