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2024 (5) TMI 954 - ITAT DELHITDS u/s 195 - Disallowance u/s 40(a)(i) - non-deduction of tax at source on shipment clearing and forwarding charges - advise v/s consultancy service - AO was of the view that the services so rendered to the assessee by the persons hired by it fell under the category of consulting services and payments made to the parties, are liable for deducting tax at source - CIT(A) deleted addition since the income could not be described as “deemed” to accrue or arising in India hence, taxability of such amount fails, Sole basis of the AO for rejecting the submissions of the assessee is that it was also advised by the overseas parties on change into tariff ratio etc - HELD THAT:- AO tried to find support from one of terms of the Contract executed between the assessee and non-resident. We find merit into the contention of the assessee, such advise would not partake character of rendering consultancy service. Merely, providing information of such nature in our considered view would not be sufficient for treating the entire services as managerial or consultancy services. If the view of the AO is accepted then any information received by the assessee from non-residents during the coruse of business would be treated as rendition of consultancy services by the non-resident. Looking to the context of providing information, it cannot be deduced such information was provided for consultancy. No infirmity into the decision of Ld.CIT(A) holding “Since the income cannot be described as deemed to accrue or arise in India and there is no doubt about such income having not been received as deemed to be received as accruing or arising in India, the taxability of such income fails.” The Revenue has not rebutted this finding of Ld.CIT(A) by bringing any contrary material on record - Decided in favour of assessee.
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