Case Law Details
ACIT Vs Goodrick Group Ltd. (ITAT Kolkata)
Assessee paid commission on export orders to two non-resident agents. TDS under section 195 was not deducted by assessee. Revenue’s case was that assessee failed to place on record any non-deduction of TDS certificate under section 195(1).
Held by ITAT
The section 195(1) casts an obligation to deduct tax only when any sum is chargeable to tax under the provisions of the Act and this position in law was confirmed by the Hon’ble Supreme Court in GE India Technology Centre Pvt. Ltd’s case reported in 327 ITR 456. The fact that the services of the export agent were rendered outside India, they are not maintaining any permanent establishment in India, they are not engaged in any activities in India and the payments were received outside India has not been disputed by the AO. I am, therefore, of the view that section 40(a)(i) is not applicable in this case for commission paid. I, therefore, direct the AO to delete the disallowance of Rs.23,87,696/-
FULL TEXT OF THE ITAT JUDGMENT
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