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No TDS on Overseas Commission; Section 40(a)(i) Disallowance Deleted, Revenue Appeal Dismissed
Case Law Details
- Case Name
- ACIT Vs Jagson Colorchem Limited (ITAT Ahmedabad)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2018-19
- Courts
- All ITAT, ITAT Ahmedabad
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ACIT Vs Jagson Colorchem Limited (ITAT Ahmedabad)
The ITAT, Ahmedabad Bench held that commission paid to foreign agents for services rendered entirely outside India is not chargeable to tax in India, and therefore no obligation to deduct TDS u/s 195 arises. Consequently, disallowance u/s 40(a)(i) is unsustainable.
In this case (AY 2018-19), the AO disallowed ₹5.63 crore being commission paid to overseas agents, purely on the ground of non-deduction of TDS, without examining whether such income was chargeable to tax in India. The CIT(A) deleted the disallowance, and the Reven...
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