TMI Blog2015 (8) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... ar No. 786 dated 07.02.2000 issued by the Central Board of Direct Taxes which inter alia states that no tax is deductible under Section 195 of the Act in respect of expenditure on export commission and other related charges payable to a non-resident for services rendered outside India - Decided in favour of assessee. Addition on shortage in production - ITAT deleted addition - Held that:- The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Commissioner of Income Tax (Appeals) deleting the addition made by the Assessing Officer on the ground that the respondent/assessee had failed to deduct tax at source as required under Section 195 of the Income tax Act, 1961 (in short 'the Act'). This appeal pertains to the assessment year 2007-08. 2. The appellant contends that the following substantial questions of law arise in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidents. The payments were remitted abroad directly. The CIT and the Tribunal set aside the order of the Assessing Officer in view of the circular No. 786 dated 07.02.2000 issued by the Central Board of Direct Taxes. The circular inter alia states that no tax is deductible under Section 195 of the Act in respect of expenditure on export commission and other related charges payable to a non-residen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions, namely, section 5(2) and section 9 of the Income-tax Act, 1961, not having undergone any change in this regard, the clarification in Circular No. 23 still prevails. No tax is therefore deductible under Section 195 and consequently, the expenditure on export commission and other related charges payable to a non-resident for services rendered outside India becomes allowable expenditure. On bei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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