Case Law Details
PCIT Vs Maharani Enterprises (Delhi High Court)
Introduction- The recent judgment from the Delhi High Court in the case of PCIT Vs Maharani Enterprises has shed new light on tax regulations. The court ruled that there is no TDS deductible on commission payment to a non-resident agent overseas. This landmark ruling has potential implications for the taxation of international business transactions.
Analysis- In the case at hand, the Revenue filed an appeal, challenging the Income Tax Appellate Tribunal’s order regarding non-deduction of TDS on commission paid to overseas agents. The main controversy revolved around the disallowance of ₹4,13,48,057/- under Section 40(a)(i) of the Income Tax Act, 1961, made by the Assessing Officer.
The key issues involved:
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