TMI Blog2012 (3) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer to delete the disallowance of commission paid to non-resident agents. Appeal of the assessee is allowed. - I.T.A. No. 08/Mds/2012 - - - Dated:- 30-3-2012 - Dr. O.K. Narayanan Shri Challa Nagendra Prasad, JJ. For the Appellant : Shri T. Banusekar, C.A. For the Respondent : Shri Shaji P. Jacob, Addl.CIT ORDER PER Challa Nagendra Prasad, Judicial Member Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of section 40(a)(i) are applied. 4. The CIT(A) confirmed the order of the Assessing Officer stating that the transaction is between a resident and non-residents. The commission was paid by a resident for services rendered to non-resident even though the services were rendered outside the country. 5. Against the order of the CIT(A), the assessee came up in appeal before us. 6. We have he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justification in disallowing the sales commission paid to non-resident agents and hence, applying the provisions of section 40(a)(i) are not justified. He further submitted that an identical issue was decided in favour of the assessee by the Hon ble Supreme Court in the case of G.E. India Technology Centre (P) Ltd. v. CIT [2010 327 ITR 456] and also by this Tribunal s order in the case of DCIT v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he commission was paid to a non-resident agents for the services rendered outside India, such payments are not chargeable to tax in India and therefore, the provisions of section 195 are not applicable in view of the decision of the Hon ble Supreme Court (supra). Therefore, we direct the Assessing Officer to delete the disallowance of commission of ₹ 1,45,83,443/- paid to non-resident agents ..... X X X X Extracts X X X X X X X X Extracts X X X X
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