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TMI Blog2018 (10) TMI 1299X X X X Extracts X X X X X X X X Extracts X X X X ..... a because right to receive commission arises when the order is executed by the assessee in India. Logic and contention of the AO is absolutely erroneous and based on mis-interpretation of the term ‘accrue or arise in India’ as per the provisions of sec.9(1). The commission is paid to foreign agent for services rendered by the agent outside India and the agent has no business link or source of income in India. Therefore, in absence of any business connection or source of income and consequently any permanent establishment in India, the said income in the hands of the foreign agent is not taxable in India. - decided in favour of assessee. - I.T.A. No.1096/Mum/2017 And C.O No. 224/Mum/2018 - - - Dated:- 23-10-2018 - SHRI SHAMIM YAHYA, AM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in assessee s own case has decided the issue in favour of the assessee. However, the A.O. rejected this contention on the ground that the department has not accepted the decision and the matter is before the Hon'ble Bombay High Court. 4. Upon the assessee s appeal, the ld. CIT(A) noted that for A.Ys. 2010-11 and 2011-12, the ld. CIT(A) s order was upheld by the ITAT and it was held that no TDS was required to be deducted on commission paid to the agent. Accordingly, the ld. CIT(A) decided the issue in favour of the assessee. 5. Against the above order, the Revenue is in appeal before us. 6. We have heard both the counsel and perused the records. The ld. Departmental Representative (ld. DR for short) placed reliance upon the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia, the said income in the hands of the foreign agent is not taxable in India. 8. Thereafter, the Tribunal has referred to the ITAT decision in the case of ACIT vs. Vilas N. Tamhankar (in ITA No. 4522/Mum/2013 vide order dated 21.11.2014) and reproduced the order therein and had concluded that following the above decision of the co-ordinate bench, no infirmity was found in the order of the ld. CIT(A). We find that the Tribunal in assessee s own case had also followed the same in other years. It is not the case that the Hon'ble jurisdictional High Court has reversed the ITAT decision. In view of the ITAT decision in assessee s own case which has not been reversed by the Hon'ble Bombay High Court yet, the decision of AAR referr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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