2019 (7) TMI 613

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..... the case PR CIT Vs. MGM Exports [ 2018 (5) TMI 1240 - GUJARAT HIGH COURT] which has been applied saying that a person paying interest or any other sum to a non resident is not liable to deduct tax if such sum is not chargeable to tax under the Act. Tribunal had not erred in law and on facts in upholding the order of the CIT(A) deleting the addition - Decided in favour of assessee. - R/TAX APPE .....

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..... facts in upholding the order of the CIT(A) deleting the addition made on account of disallowance of ₹ 2,93,56,350/under section 40(a)(ia) of the Act for nondeduction of tax on commission payable to foreign agents. 3. This tax appeal has something to do with the Section40( a)(ia) of the Act. The issue is with regard to the deletion of the addition made on account of the di .....

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..... be safely concluded that the Commission income in the hands of foreign agent is not chargeable to tax in India in the given facts circumstances. Once an income is not chargeable to tax in India then the question of deducting TDS under the provision of section 195 of the Act does not arise. Accordingly, we do not find any reason to interfere in the order of ld. CITA. Hence the ground of appeal r .....

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