TMI Blog2012 (8) TMI 1139X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi dated 16.11.2011, relevant to assessment year 2008-09, whereby deletion of addition of ₹ 29,06,352/- made by the Assessing Officer on account of commission payment without deducting TDS u/s 40(a)(ia) of the I.T. Act, 1961 has been challenged. 2. Facts indicate that the assessee is a partnership firm of two partners and doing the business of export of hardware items. The assessee pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y that assessee is in this business for a long time and has been making commission payment to foreign party as the business is secured for the foreign agents. The assessee also submitted that foreign agent is non-resident overseas agent and has no PE or business activity in India and as such no TDS is deductible u/s 194H or u/s 195 to warrant the disallowance u/s 40(a)(ia) of the Act. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble merit in the submission of the assessee that he payment of commission are made to non-resident overseas agent, who has no PE or business activities in India and the services are also rendered outside India and as such no income is arising to the non-resident commission agent in India and as such no TDS is deductible u/s 194H (commission) which is applicable for resident Indians only. Even the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on made by the Assessing Officer is deleted. 4. Aggrieved by this order of the CIT(A), department ahs come up in appeal and Ld.DR while relying upon Assessing Officer s order has pleaded for reversal of the order of the CIT(A) and restoring that of the Assessing Officer whereas Ld.Counsel for the assessee relied upon order of the CIT(A) and pleaded for confirmation of the same. He has also sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the CIT(A) and find that basis and reasoning as given by the CIT(A) in deleting the impugned addition made by the Assessing Officer are sound and convincing in the light of the case law relied upon. Neither any contrary material has been placed nor any infirmity or flaw has been pointed out or noticed in the order of the CIT(A). As such while concurring with the finding of the CIT(A), we uphold ..... X X X X Extracts X X X X X X X X Extracts X X X X
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