Commission payment, for sales and marketing support outside India, does not constitute income chargeable to tax in India

Recently, the ITAT Delhi in the case of Eon Technology (P) Ltd. Vs. DCIT [2011] 11 taxmann.com 53 (Del) /(343 ITR 366) (Del) held that payment by way of commission for sales and marketing support outside India does not constitute income chargeable to tax in India under the Income-tax act, 1961 (the Act). Facts of the case The taxpayer was engaged in the business of development and export of software. The taxpayer claimed a deduction of INR 3,336,068 representing commission paid to M/s Eon Technologies, UK (ETUK) under an agreement with ETUK. As per the agreement, since the taxpayer was not in...