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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 ..... ion and professional charges 2. Whether the CIT(A) is right in holding that the provisions of section 40(a)(i) are not applicable for commission and professional charges paid by the assessee to non residents. 3. Whether the CIT(A) ought to have held that the payments relate to services utilised in India and therefore, the provisions of section 195 and section 40(a)(i) are applicable. 3. Brief facts of the issue are that during the course of assessment proceedings, the Assessing Officer found that the assessee had paid the following amounts to its commission agents as export sales commission: Date Name of the part Amount in Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion is about genesis or accruing or arising in India, by virtue of connection with the property in India, control and management 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 to him by way of TT or posting of cheques/demand drafts in India and, therefore, the same is not received by him on his behalf cases. Under these circumstances, withdrawal of earlier circulars issued by the CBDT had no assist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered outside India becomes allowable expenditure and the same is outside rigors of section 40(a)(ia). In the instant case, the CIT(A) observed that the assessing officer had not been able to establish that there was specific intention of the payee to receive the payment within the 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, accordingly, the same was to be upheld. 5. Respect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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