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2024 (1) TMI 1075 - AT - Income TaxTDS u/s 195 - addition u/s 40(a)(i) - sales commission expenses paid to agents outside India for non-deduction of tax at source - HELD THAT:- We find that the assessee had sufficiently demonstrated that services rendered by the foreign agents were all outside India for procuring the sale orders for the assessee with the agreement clearly pointing out that foreign agents required to procure sales from the respective territories outside India for the assessee. Certificates furnished by these agents demonstrated that they had no place of business in India and invoices of exports, as also invoices raised by the commission agents sufficiently proved that they had paid commission for the export orders procured by them for the assessee. Thus, all the documentary evidences, placed before us and noted by us, have been sufficiently proved, we hold that the agents were remunerated by way of commission for procuring sale orders for the assessee outside India; that there is no evidence on record to show that any services by these agents was rendered in India. As considering in the case of Toshoku Ltd. [1980 (8) TMI 2 - SUPREME COURT] commission income earned by such agents cannot be termed to have incurred or arisen in India, and therefore, was not taxable in India - there was no liability on the assessee to deduct any TDS of such commission income. The disallowances therefore made are uncalled for - Decided in favour of assessee.
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