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TMI Blog2014 (4) TMI 1247X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent : Shri S.P. Chidambaram, CA. ORDER PER VIKAS AWASTHY, J.M: The appeal has been filed by the Revenue against the order of the Commissioner of Income Tax(Appeals)-IV, Chennai dated 30-09-2013 relevant to the Assessment Year (AY) 2005-06. The only issue raised in the appeal by the Revenue is non-deduction of tax at source by the assessee on payment of overseas commission. 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessment beyond the period of six years. However, Assessing Officer rejected the objections raised by the assessee on the issue of re-opening and dis-allowed the commission paid to the foreign agents without deduction of tax at source u/s.40(a)(i) of the Act. The Assessing Officer observed that the assessee had claimed expenses of Rs. 5,77,90,724/- towards commission to foreign agents wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R 456 and deleted the addition made u/s.40(a)(ia) of the Act. Now, the Revenue has come in appeal before the Tribunal assailing the findings of CIT(Appeals). 3. Shri T.N.Betgeri, appearing on behalf of the Department reiterated the grounds raised in the appeal and prayed for setting aside the findings of CIT(Appeals) on the issue of deleting dis-allowance made u/s.40(a)(i) of the Act. The ld.DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue in favour of the assessee. The ld.AR placed on record a copy of the order of the co-ordinate bench of the Tribunal in ITA Nos.425 & 426/Mds/2011 (supra). 5. Both sides heard. Orders of the authorities below as well as the order of the co-ordinate bench of the Tribunal in ITA Nos.425 & 426/Mds/2011 (supra) perused. The CIT(Appeals) in the impugned order has categorically observed: i. "The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Tribunal in favour of the assessee. Moreover, the Hon'ble Supreme Court of India in the case of GE Technology Centre P. Ltd. Vs. CIT (supra) has held that mere remittance to non-residents does not automatically make the person liable to deduct tax at source. The duty to deduct tax at source arises only if remittance contains wholly or partly taxable income in India. In view of the well se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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