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TMI Blog2011 (8) TMI 1319X X X X Extracts X X X X X X X X Extracts X X X X ..... ari, This appeal preferred by the Revenue is directed against the order passed by the CIT(A) V-Hyderabad dated 8.4.2010 and pertains to the assessment year 2006-07. 2. The Revenue raised the following grounds in its appeal: 1. Whether the CIT(A) is right in holding that the provisions of Sec.195 are not applicable for payments of commission and professional charges 2. Whether the CIT(A) is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the opinion that similar issue came up for consideration before this Tribunal in the case of DCIT Vs. Divi's Laboratories Ltd. (131 ITD 271)(Hyd). The Tribunal after considering the entire issue held as under: "The CBDT by its recent Circular No.7, dated 22.10.2009 had withdrawn its earlier Circular Nos.23 dated 23.7.2009, 163 dated 29.5.1975 and 786 dated 7.2.2000. The earlier circulars i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent vested in India, which were not satisfied in the instant cases. Under these circumstances, withdrawal of earlier circulars issued by the CBDT had no assistance to the department, in any way in disallowing such expenditure. It appeared that an overseas agent of Indian exporter operated in his own country and no part of his income arises in India and his commission is usually remitted directly t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or mean that the moment there is a remittance; the obligation to deduct TDS automatically arise. If such contention was to be accepted, it would mean that on mere payment in India, income would be said to arise or accrued in India. If the contentions of the department were to be taken as correct, that any person making payment to a non resident was necessarily required to deduct tax, then the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he territory of India, therefore, the CIT(A) rightly did not agree with the view taken by the assessing officer with regard to the addition made on this issue and the CIT(A) was justified in directing the assessing officer to delete the said addition. After considering the totality of facts and the circumstances of the case the order of the CIT(A) on this issue was not to be interfered with and, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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