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2017 (2) TMI 1416 - HC - Income TaxTDS u/s 195 - commission payments made by way of demand drafts and sent through medium of couriers to a non-resident abroad, are remittances deemed to have been received in India, by virtue of Section 5(2)(a) - HELD THAT:- As decided in SRIRAM REFREGERATION INDUSTRIES VERSUS INCOME-TAX OFFICER [2014 (4) TMI 277 - ANDHRA PRADESH HIGH COURT] this Court held that in the absence of a contract between a foreign bank and a bank in India, the bank cannot be taken to be acting as an agent. Therefore, the first question of law has to be answered against the appellant/Revenue, since Section 195 itself is not applicable in such cases. Income accrued in India - Commission payments were made in the books of accounts of the assessee maintained in India, the commission payments would be deemed to have been received in India - HELD THAT:- The decision of the Supreme Court in Commissioner of Income Tax, A.P. Vs. Toshoku Limited [1980 (8) TMI 2 - SUPREME COURT] . It was held therein that the making of entries in the books of accounts of the assessee cannot be taken to be the receipt, actual or constructive by non-resident sales agents, as the amounts so credited in their favour were not at their disposal or control. Therefore, the second question of law is also answered against the appellant/Revenue.
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