Disallowance u/s. 40(a)(i) quashed as commission paid to non-resident outside India is not taxable

Derewala Industries Limited Vs ACIT/DCIT (ITAT Jaipur) ITAT Jaipur held that disallowance u/s. 40(a)(i) of the Income Tax Act untenable since amount of commission paid to a non resident outside India for the services rendered outside India will not fall in the category of income, and as such would not be chargeable to tax. Facts- The Assessing Officer assessed total loss of the assessee at Rs. 4,48,87,707/-, after disallowing a sum of Rs. 3,63,287/- worked out u/s. 40(a)(i) of the Act due to non-deduction of the TDS; after disallowance a sum of Rs. 5,73,999/- worked out u/s. 14A of the Act; an...