9911796707
TMI Blog2024 (11) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the Assessment Unit, Income Tax Department (hereinafter referred to as 'AO') under Section 143(3) read with section 144B of the Income Tax Act, 1961 (the Act) for Assessment Year 2020-21. 2. The grounds of appeal raised by the Revenue reads as under: 1. That the CIT(A), NFAC has erred in law and on facts by deleting the addition made on account of commission paid to non-resident person without deducting TDS in contravention to the provision of section 40(a)(ia) read with section 195 the IT Act, 1961. 2. That the CIT(A), NFAC has erred in law and on facts by deleting the addition made on account of commission paid to non-resident person though the income was covered under Explanation-2 to the Section 9(1) of the IT Act, 1961 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law, the respondent with sufficient Evidence and proper Case Laws presented the Case before Ld. CIT (A) in Context of Section 9 of the Act for which Respondent was awared with Natural Justice. 5. That on the facts and in the circumstances of the case and in law, the money paid by the Respondent, Cross Border was an amount of Commission paid to the agents and no technical service was provided by them. Ld. AO intentionally trying to brag things without any sufficient grounds and is making case on his own. 6. That on the facts and in the circumstances of the case and in law, Ld. AO from the very first day of assessment was told that, the commission paid to the agents was for procuring business from a company based in Australia. Although th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained from foreign agents. 5. Aggrieved, the assessee preferred appeal before the CIT(A). 5.1 The CIT(A) applied the view expressed by the CIT(A) in favour of assessee in the similar facts concerning Assessment Year 2017-18 which was, in turn, approved by the Tribunal. The issues was accordingly resolved in favour of the assessee and consequently disallowance made towards commission expenses in the Assessment Order were deleted by the CIT(A). 6. Aggrieved by the relief granted by the CIT(A), the Revenue has knocked the door of the Tribunal. 7. The ld. Sr. DR for the Revenue relied upon the observations made in the Assessment Order. 8. The ld. Counsel for the assessee, on the other hand, supported the order of the CIT(A) and submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he additions stood deleted by the CIT(A) and the action of the CIT(A) granting relief was affirmed by the ITAT in assessee's own case in ITA No. 5/Del/2021 order dated 18.07.2023. 9. We have carefully considered the rival submissions. As pointed out on behalf of the assessee, the commission payments have been made to non-resident agents for services rendered outside India and therefore, not chargeable to tax in India. In the absence of chargeability to tax, the provisions of Section 195 of the Act are not attracted as rightly held by the CIT(A) in the present case. The action of the CIT(A) granting relief to the assessee is in sync with the view expressed by the Tribunal in assessee's own case in the Assessment Year 2017-18. We thus see no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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