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1 - 8 of 8 (0.25 seconds)The Income Tax Act, 1961
Section 9 in The Income Tax Act, 1961 [Entire Act]
Section 192 in The Income Tax Act, 1961 [Entire Act]
Section 194H in The Income Tax Act, 1961 [Entire Act]
Commr.Of Income Tax,New Delhi vs M/S Eli Lilly & Company (India) P.Ltd on 25 March, 2009
Therefore, keeping in view the entirety of the facts and the
circumstances, judicial pronouncement relied upon by the Ld. AR,
referred to above, I find considerable merit in the submissions of
the appellant that the payment of commission are made to non-
resident overseas agents who have no PE or business activities in
India and the services are also rendered outside India as such no
income is arising to the non-resident commission agent in India
and as such no TDS is deductible u/s 194-H which is applicable for
resident Indians only. On the basis of above discussion, I am of the
considered view that commission payment to the non-resident
does not represent income which is chargeable to tax u/s. 195 of
IT Act, 1961 when examined and analysed under the framework of
provisions of Income Tax Act, 1961. It is therefore held that TDS
was not required for commission payment which was paid to non-
residents. As such the mischief of section 40(a)(i) for the
disallowance is not warranted. Consequently, no disallowance u/s.
40(a)(i) of the Act could be made as there is no violation of TDS
provisions. The disallowance of Rs.97,41,655/- made by the AO is,
therefore, held to be not justified. The same is directed to be
deleted. Thus, appellant gets relief in respect of this ground of
Appeal raised by him."
Section 5 in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income-Tax, Andhra ... vs Toshoku Ltd., Guntur Etc on 29 August, 1980
4.1.7 In the present case, there is no business connection at all of
the agent in India - real or intimate from which income has arisen
directly or indirectly. Thus, in the light of ratio of above
judgments, the activity of foreign agent rendering services to
exporter in India can be best described as income accruing from
business connection u/s. 9(1 )(i), thus carrying on some activity in
India is must for making their foreign commission taxable in India
as also held by the Hon'ble Supreme Court in the case CIT vs.
Toshoku. Thus, in the absence of any services rendered in India,
foreign commission paid to non-resident for services rendered
outside India is not taxable in India and hence, no liability to
deduct TDS u/s. 195.
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