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2015 (10) TMI 166 - AT - Income TaxDisallowance of commission amount paid to foreign agents u/s 40(a)(i) - non deduction of tax at source - Held that:- . We notice that the assessing officer or Ld CIT(A) has not brought any material on record to substantiate their views that some other kind of services were also rendered by the foreign agents. Hence, we have to agree with the submission of the assessee that the commission amounts were paid for procuring sales orders. Hence, by following the decision rendered by the Hon’ble Madras High Court in the case of CIT V/s Faizan Shoes Pvt Ltd [2014 (8) TMI 170 - MADRAS HIGH COURT] and Delhi Bench of the Tribunal in the case of Dy. CIT v Angelique International Ltd. (2013 (10) TMI 17 - DELHI HIGH COURT) we hold that the payment made for technical services will not fall in the category of “Fee for Technical Services” as defined u/s 9(1)(vii) of the Act. Accordingly, we hold that the Assessee is not liable to deduct tax at source from the commission payments made to the foreign agents in the facts and circumstances of the instant case. Accordingly, we set aside the order of ld. CIT(A) and direct the AO to delete the impugned disallowance. - Decided in favour of assessee.
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