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TMI Blog2018 (6) TMI 1859X X X X Extracts X X X X X X X X Extracts X X X X ..... assesses was not required to deduct tax accordingly, no disallowance can be made u/s.40(a)(i) of the Act. With regard to export commission paid to the foreign agents CIT(A) recorded a clear finding that commission has been paid for procuring export order and payment was made outside India. After relying on the CBDT Circular No.23 of 1969, 786 of 2000 and 7 of 2009, the CIT(A) held that no tax is deductible in respect of such export commission.CIT(A) also relied on the decisions of Welspring Universal [ 2015 (1) TMI 736 - ITAT DELHI] and Faizan Shoes (P) Ltd. [ 2014 (8) TMI 170 - MADRAS HIGH COURT] , which has been accepted by the Department and no SLP has been filed. Thus no infirmity in the order of CIT(A) for deleting the disallowance mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... warsito Rs.31,91,0747- (iii) Lim GillJaa Rs. 1,93,9227- (iv) M/s.Panasonic Avionics Corporation Rs.94,24,047/- (v) Thales Avionics Inc. Rs. 8,39,382/- (vi) Turner Broadcasting System Asia Pacific Inc. Rs. 8,85,687/- The aforesaid parties were foreign commission agents to whom assessee had paid commission for procurement of orders. The said commission was remitted directly from India to the overseas bank accounts of the agents. The assessee vide letter dated 06.01.2016 submitted that these non-resident agents operated outside India and therefore no part of their income arises during the year in Indian tax jurisdiction. Regarding allowably of commission paid to foreign parties, the assessee vide its written submission dated 11.01.2016 pointed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alance amount of content development expenses paid by it. In view of the above, the AO disallowed a total amount of Rs.12,27,833/- u/s.40(a)(ia) of the Act, being Rs.3,96,237/- as above and Rs.8,31,596/- out of amount paid to Turner Broadcasting System Asia Pacific Inc. The CIT(A), by following the earlier order passed by him on the issue, for assessment years 2011- 12 and 2012-13, held that no disallowance is called for u/s 40(a)(ia) in respect of content and software development expenses. Accordingly, he deleted the addition. 5. Aggrieved, the revenue is in appeal before the Tribunal with the following grounds of appeal:- 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that no TDS was d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icial pronouncements, he reached to the conclusion that payment to M/s. Columbus Travel Media Ltd., and Zagat Survey LLC cannot be treated as royalty u/s.9(1)(vi) of the Act. Hence, assesses was not required to deduct tax u/s.94 of the Act, accordingly, no disallowance can be made u/s.40(a)(i)of the Act. 7. With regard to export commission paid to the foreign agents, the CIT(A) recorded a clear finding that commission has been paid for procuring export order and payment was made outside India. After relying on the CBDT Circular No.23 of 1969, 786 of 2000 and 7 of 2009, the CIT(A) held that no tax is deductible in respect of such export commission. The CIT(A) also relied on the decisions of ITAT Delhi in case of Welspring Universal, Madras H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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