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2023 (8) TMI 295 - HC - Income TaxTDS u/s 195 - disallowance u/s 40(a)(i) - non-deduction of TDS on expenditure being the commission paid to agent overseas - assessee’s case that the commission paid to overseas agents was not chargeable to tax under the Act, therefore, it had no obligation to deduct TDS - ITAT allowed assessee appeal - HELD THAT:- It is trite law that a foreign resident who does not carry on any business operations in the taxable territories in India, and has no permanent establishment or business connection, is not liable to pay tax under the Act in respect of any amount remitted by resident assessee. In the present case, there is no material on record to even remotely suggest that the non-resident, who had been paid the export commission had any permanent establishment in India; had carried on any business within the taxable territory in India; or had any business connection in India rendering them liable to pay tax under the Act. There is also no allegation that the payments made were not bona fide expenses. No substantial question of law arises - Decided against revenue.
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