Foreign Agent Commission Not Taxable: ITAT Quashes 40(a)(i) Disallowance for Services Outside India

Orbit Resorts Limited Vs DCIT (ITAT Chandigarh) Services Outside India, No PE, No Tax: Tribunal Deletes 40(a)(i) Disallowance; Commission ≠ Technical Service: Tribunal Slams AO   Orbit Resorts Ltd., engaged in hospitality business operating luxury hotels such as The Oberoi & Trident, filed its return declaring huge losses. During scrutiny u/s 143(3), AO noticed payment of commission to foreign agents. AO held that the services rendered by foreign entities were not mere referral services but involved expert support & therefore constituted fees for technical services. Since no TDS wa...