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2019 (7) TMI 126 - AT - Income TaxTDS u/s 195 - Addition on account of expenses in foreign currency - HELD THAT:- It appears from the records that the appellant incurred expenses pertain to Advertisement and other general business promotion through engagement of a party in UK. The relevant invoice raised by the said party was also before the authorities below wherefrom it was revealed that the party do not fall in the nature of technical, managerial or consultancy services, but pure marketing service was rendered by the non-resident for promotion of business of the appellant outside India in a particular specified territory. According to the assessee, unless an amount can be said to have accrued or arisen in India or deemed to have accrued or arisen in India, the provisions of section 195 is not attributed and consequently the provisions of section 40(a)(i) is also not applicable. When the payee does not have any permanent establishment in India and when the payment were made outside in India for such services then such payment to foreign parties ought not to have been considered as accrued or arisen in India by the AO which is not at par GE INDIA TECHNOLOGY CENTRE PRIVATE LTD. VERSUS CIT. [2010 (9) TMI 7 - SUPREME COURT] and TOSHOKU LIMITED (AND ANOTHER APPEAL) [1980 (8) TMI 2 - SUPREME COURT] . Respectfully following the same, we do not find any infirmity in deleting the same by the Learned CIT(A) so as to warrant interference. We thus confirm the same. Hence, Revenue’s ground of appeal is dismissed. Exemption of income u/s 10AA - higher profits reported by it in comparison to the sister concern - reduction in net profit of eligible business made by the AO - HELD THAT:- No infirmity in the order passed by the Learned CIT(A) in deleting the reduction in net profit of allowable business as made by the Learned AO wrongly invoking the provision of section 10AA(9) r.w.s. 80IA(10) of the Act. We thus confirm the same. Hence, revenue’s ground of appeal is found to be devoid of any merit and thus dismissed.
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