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2018 (11) TMI 384 - AT - Income TaxAddition towards commission paid to foreign agent - non deduction of tds - Held that:- It is the case of the assessee that as per the terms of the agreement, what the assessee actually receives from the foreign customer is 98% of the invoice value after deduction of 2% commission amount. For e.g., if the invoice raised by the assessee is for ₹ 100, it actually receives ₹ 98 from the foreign customer. Notably, while deciding identical issue in assessee’s own case for assessment years 2009–10 and 2011–12, the Tribunal has deleted similar disallowance made by the Assessing Officer holding that on the reasoning that the assessee has realised only net amount and further the impugned payments are not liable for deduction of tax at source, since the same is not taxable in India in the hands of recipients. Following the same, we set aside the order passed by Ld CIT(A) on this issue and direct the AO to delete the disallowance - Decided in favour of assessee.
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