2009 (11) TMI 950

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..... f the Revenue is directed against the order of the CIT (Appeals) V, Hyderabad, and pertains to asst. year 2003-04. The only issue that arises for consideration in this appeal is disallowance of ₹ 38,34,905 on the ground that the assessee failed to deduct tax at source while making payment outside India. 2. Shri H.Phani Raju, learned departmental representative, submitted that the assessee .....

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..... ts were made in India. The foreign agents have no permanent establishment in India. According to the learned representative, the entire payments were made in US $ by a branch office situated outside India. The entire services were rendered only outside India. In those circumstances, according to the learned representative, the provisions of sec. 195(1) of the Income-tax Act may not be applicable. .....

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..... e, the assessee may not be required to deduct tax under sec. 195(1). Therefore, in our opinion, the disallowance made by the AO was not justified. The CIT (A) has rightly deleted the addition. In view of the above discussion, we do not find any infirmity in the order of the lower authority. Accordingly, the same is confirmed. 5. In the result, the appeal of the Revenue stands dismissed. Orde .....

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