TDS U/s. 195 not deductible on Payment of commission to non-resident if No operations of foreign agent carried on in India

Bengal Tea & Fabrics Ltd. Vs Dy. CIT (ITAT Kolkata) ITAT held that when no business operations of commission agent were carried on in India, commission earned by them would be outside the ambit of income ‘deemed to accrue or arise in India’ for the purpose of section 5(2)(b) read with section 9(1)(i) of Income tax act, 1961, therefore, question of deducting tax under section 195 did not arise and disallowance in question was not justified. FULL TEXT OF THE ITAT JUDGMENT This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-6, Kolkata dated 20...