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2015 (8) TMI 910 - AT - Income TaxRevision u/s 263 - commission paid to non-resident foreign companies without deduction of tax at source as concluded by CIT(A) - Held that:- Assessee is engaged in the trading of yarn with various countries. In order to sell its products, the assessee appointed agents on sales commission basis in various countries. The relationship between the assessee and the non-resident agents is alleged to be that of principal and agent. The said non-resident agent is a link between the foreign buyer and the assessee. The overseas agents of the assessee do not have any permanent establishment or place of business in India and they are rendering their services outside India. As such, charging commission on the services rendered outside India is not taxable in India. See ACIT Vs. M/s.Eagle Press (P) Ltd.[2011 (6) TMI 734 - ITAT CHENNAI ] Commissioner of Income Tax is erroneous. The provisions of section 195 and section 9 of the Act, relating to deduction of tax at source on payments made to foreign parties and levy of tax on payments so made are not applicable in the present facts of the case. - Decided in favour of assessee.
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