No income accrues or arises in India if Non-resident rendered services outside India

ACIT Vs Groz Engineering Tools Pvt. Ltd. (ITAT Delhi) Non-residents have rendered the services outside India and have been paid in foreign currency. Therefore, no income accrues or arises in India. These non­residents do not have any PE or business connection in India which is not doubted by the AO. Further, the Assessing Officer has not made any efforts to establish any ‘business connection’ for invoking section 9(1)(i) of the Act. Thus, in the absence of same, the AO is wrong in invoking the provisions of section 9(1)(i) and accordingly export commission paid by the assesse is n...