If income is not chargeable to tax in India, tax is not required to be deducted u/s 195(1)

IN THE ITAT HYDERABAD BENCH ‘A’ Assistant Commissioner of Income-tax, Circle-16(3) versus Priyadarshini Spinning Mills (P.) Ltd. IT Appeal No. 1776 (Hyd.) of 2011 [Assessment year 1998-99] JULY 6, 2012 ORDER Saktijit Dey, Judicial Member This appeal filed by the Revenue is directed against order dated 2-8-2011 of CIT(A)-V, Hyderabad and it pertains to the assessment year 1998-99. 2. Grounds raised by the Revenue read as under:- “1.  The CIT(A) erred both in facts and law.  2.  The CIT(A) erred in deleting the addition of Rs.80,50,703/- towards commission o...