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2023 (7) TMI 851 - AT - Income TaxAdmission of additional evidences by CIT(A) - application u/r 46A for admittance of additional evidence on the ground that the assessee was prevented by sufficient cause from producing the details / evidences / documents which were important for assessment before AO - HELD THAT:- The actual fact is that the assessee had filed Form 15CA for each of the transactions that was made outside the country. Veracity of evidence may not have direct linkage with the circumstance enumerated in Rule 46A(1)(a) to (d) yet the same evidence has lot of legal impact in deciding the issue involved in the appeal. Admittedly the Ld. CIT(A) has complied with the mandate of allowing reasonable opportunity to the Ld. AO as envisaged under sub-rule (3) of Rule 46A. Disallowance of claim of commission payment - Liability to deduct TDS for making payment to Non-Residents - withholding tax on “commission” payments made to two residents of Australia - HELD THAT:- AO completely disregarded the explanation of the assessee submitted to him vide reply emphasising therein that the recipient of commission were resident of Australia; had no PE in India; assisted the assessee in procuring service agreement with M/s. Tech Mahindra; received commission in foreign currency in Australia in lieu of services provided by them in Australia; income accrued to them outside India and cannot be deemed to have been accrued in India. Hence, their income is not liable for income tax in India. Therefore, no liability to deduct TDS arises thereto. It has been held in the following decisions that where payment of commission has been made by the assessee to non-resident agents for rendering services of procuring sales order etc. it was not FTS but business profit and in absence of PE of such agents in India, such commission payment was not taxable in India. Once we hold that the impugned payment by the assessee is not FTS the assertions made in the grounds of the Revenue do not have legs to stand. Moreover, these grounds do not arise out of the order of the Ld. CIT(A). We, therefore, reject them. Decided in favour of assessee.
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