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TMI Blog2014 (7) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... ders for which commission is paid - nonresident agents have no business connection nor they have any permanent establishment (PE) in India - non-resident agents are procuring orders for the assessee and are thus operating outside the Indian territory – The decision in Assistant Commissioner of Income-tax, Company Circle- II(1) Versus Farida Shoes (P.) Ltd. [2013 (11) TMI 907 - ITAT CHENNAI] - paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax(Appeals)-II, Chennai, dated 11-11-2013 relevant to the Assessment Year (AY) 2009-10. The only issue in appeal is deleting of dis-allowance made u/s.40(a)(ia) of the Income Tax Act, 1961 (herein after referred to as 'the Act') for non-deduction of tax at source on the overseas payment of agency commission. 2. The assessee is engaged in the business of exporting leather goods. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & 360/Mds/2013) decided on 11-04-2013 and in the case of ACIT Vs. Delta Shoes P. Ltd., (ITA No.909/Mds/2013) decided on 31-07-2013, the CIT(Appeals) deleted the addition. 3. Shri Guru Bhashyam, appearing on behalf of the Department assailing the order of CIT(Appeals) vehemently supported the assessment order and reiterated the grounds raised in the appeal. The ld.DR submitted that the CIT(Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finding that the facts in the present case are similar to facts and circumstances in the case of M/s.Farida Shoes P. Ltd., (supra). The payments to non-residents for procuring export orders are not assessable to tax in India. The Hon'ble Supreme Court of India in the case of GE Technology Cen. P. Ltd., Vs. CIT reported as 327 ITR 456 (SC) has held, that if any sum is paid to the non-resident whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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