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2021 (4) TMI 466 - MADRAS HIGH COURTRevision u/s 263 - Income deemed to accrue or arise in India - HELD THAT:- Non-resident assessee did not carry on any business operations in the taxable territories. They acted as selling agents outside India. The receipt in India of the sale proceeds of tobacco remitted or caused to be remitted by the purchasers from abroad does not amount to an operation carried out by the assessee in India as contemplated by clause (a) of the Explanation to section 9(1)(i) of the Act. The commission amounts which were earned by the non-resident assessee for services rendered outside India cannot, therefore, be deemed to be incomes which have either accrued or arisen in India. The High Court was, therefore, right in answering the question against the Department. As relying on M/S. FLUIDTHERM TECHNOLOGY PVT. LTD., [2015 (4) TMI 191 - MADRAS HIGH COURT] and MALABAR INDUSTRIAL CO. LTD. VERSUS COMMISSIONER OF INCOME-TAX [2000 (2) TMI 10 - SUPREME COURT] issue decided in favour of assessee.
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