Case Law Details
DCIT Vs M/S Sterling Ornament (P) Ltd (ITAT Delhi)
The assessee in his submission has clearly stated that payment made to foreign agent is clearly commission paid and according to section 195(1) of the act, the payment directly made to the overseas agent at their places was not accrue or arises to the overseas agent in India is not chargeable to tax under the provisions of Income Tax Act.
Section 195 of the Act has to be read alongwith the charging Section 4,5 and 9 of the Act. One should not read Section 195 of the Act to mean that the moment there is a remittance, the obligation to deduct tax automatically arises. Section 195 of the Act clearly provides that unless the income is chargeable to lax in India, there is no obligation to withhold tax. In order to determine whether the income could be deemed to accrue or arise in India, section 9 of the Act is the basis.
FULL TEXT OF THE ITAT JUDGMENT
This appeal by the Revenue is directed against the Order of the Ld. Commissioner of Income Tax (Appeals)-XII, New Delhi dated 28.5.2014 pertaining to assessment year 2011-12 on the following grounds:-
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