9911796707
TMI Blog2018 (10) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... nue is in appeal against the judgement of the Income Tax Appellate Tribunal dated 19.04.2018 raising following question for our consideration: "Whether the Appellate Tribunal has erred in law and on facts in deleting the addition of Rs. 18,80,876/- made on account of Commission paid to no-resident u/s. 40(a)(ia) of the Act?" 2. The issue arises in relation to assessment year 2011-12. During th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as no liability to deduct tax at source. 3. The Assessing Officer did not accept such explanation and made the addition of entire amount in terms of section 40(a) (ia) of the Act. The assessee carried the matter in appeal. CIT(A) gave substantial relief to the assessee. All additions, barring commission payment of Rs. 18.80 lacs (rounded off) were deleted. With respect to the said sum of Rs. 18.8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax at source on any person responsible for paying to a non-resident any sum chargeable under the provisions of the Act. The prime requirement therefore for applicability of the section is that the payment to the nonresident should be a sum chargeable under the provisions of the Act. In other words, the payment is not an income which is chargeable to tax in India. Requirement of deducting tax at so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income in India or through the transfer of a capital asset situate in India shall be deemed to accrue or arise in India. 7. In the present case, as noted, admitted facts are that the nonresident agents appointed by the assessee for procuring export orders do not have permanent establishment in India. Their agents are situated outside India. Their activities as commission agents are being carri ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
