No section 40(a)(i) disallowance for commission paid to overseas agents

Carraro India Private Limited Vs DCIT (ITAT Pune)

 It is seen that the assessee paid commission of Rs.58.65 lakh to overseas agents for export orders obtained by them in overseas territories. Section 195 mandates the deduction of tax at source from any sum paid by the assessee which is ‘chargeable under the provisions of this Act‘. If the sum so paid is not chargeable to tax under the Act, there can be no question of deduction of tax at source and the consequential disallowance u/s.40(a)(i). As admitted

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