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TMI Blog2016 (5) TMI 1351X X X X Extracts X X X X X X X X Extracts X X X X ..... mber) These are the appeals filed by the assessee and revenue against the order of CIT(A)-Mumbai, for the assessment year 2009-2010. 2. The assessee in its appeal is aggrieved for disallowance of Rs. 1,18,39,722/- paid towards commission on export sales. The AO disallowed commission paid to the non-resident agents of Rs. 1,18,39,722/- on export sales. AO made the disallowance u/s.40(a)(i) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent co-ordinates with the assessee company in regard to the orders placed by the customers and supply of material. The agent also facilitates and assists the assessee company in collection of sale proceeds, if required. Thus the export sales are made to a party outside India through the services rendered by the agent outside India. The commission is paid to agents outside India for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of coordinate bench in the case of Indo Industries Ltd. 53 taxman.com 458, wherein it was held that commission paid to one agent having no PE in India, are not liable to tax in India as no taxable income accrues or arose to such agents in India, therefore, the assessee was not required to deduct tax at source while making payment to such commission agent. In view of the above, we do not f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the additions under the sections under discussion is upheld but to maintain a rule of consistency and to bring the correct income to taxation, the AO is directed to take necessary action regarding the calculation of the quantum of disallowance that has to be made in the case of the appellant following the directions as given in AY 2007-08 by the CIT(A). Here the AO is also directed to ensure that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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