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2017 (10) TMI 1154 - ITAT DELHIDisallowance made u/s. 40(a)(ia) - commission paid on sales to a non-resident individual, situated outside India - fee for consultancy services liable to be taxed in the hands of foreign agent in terms of Section 5 read with Explanation -2 to section 9(1)(vii) - Held that:- In the facts of the case, the agreement between the assessee and the agent and any documentary evidence supporting the services rendered are critical for deciding, whether the services rendered are in the nature of purely commission services or in the nature of consultancy services. The lower authorities have not examined the services rendered by the foreign agent in the light of required documentary evidences. In view we are of the opinion that the issue of holding the services rendered by the agent as fee for consultancy services, need reexamination by the Assessing Officer. Accordingly, we restore the matter to the file of the Assessing Officer for re-examination of the issue in dispute. The ground No.1 of the appeal is accordingly allowed for statistical purposes. Disallowance of credit card expenses - Held that:- In view of the facts of the case, we feel it appropriate to restore the matter to the file of the Assessing Officer for consideration afresh. The assessee shall be afforded sufficient opportunity of being heard. The Ground No. 2 of the appeal is also allowed for statistical purposes.
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