ITA Nos. 231& 232/Coch/2023

Parties Involved

Facts Summary

Safa Enterprises, the assessee, filed appeals against the orders of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 31.01.2023 & 01.02.2023 for Assessment Years (AY) 2010-11 & 2013-14 respectively. The assessee argued that the CIT(A) erred in confirming the addition made by the Assessing Officer (AO) of Rs. 4,26,849/- and Rs. 7,24,265/- respectively representing the commission paid to the foreign agent on account of non-deduction of TDS u/s. 195 r.w.s. 40(a)(i) of the Income Tax Act, 1961. The assessee relied on Circular No. 786, dated February 7, 2000, which was withdrawn on October 23, 2009. The CIT(A) upheld the addition done by the AO and dismissed the appeal. The assessee appealed to the Income Tax Appellate Tribunal, Cochin Bench.…

Legal Issues

• 1. Whether the commission paid to foreign agents is taxable in India?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Advaya Educational and Charitable Trust vs. Commissioner of Income Tax (Exemption)

  Bangalore bench

• HDFC ERGO General Insurance Company Ltd. vs DCIT, Central Circle-6(2), Mumbai

• Bidyut Prakas Bhattacharya Vs. I.T.O., Ward-52(1), Kolkata

  Kolkata 'SMC' Bench benchAY 2018-19Allowed

• Sukh Amrit Society vs. The CIT(Exemptions)

  Chandigarh bench

• Sunku Satyanarayana Sanjay Vs. The Deputy Commissioner of Income Tax

  Bangalore benchAY 2018-19Allowed

• DR PANDHI'S SMALL IDEAS GREAT IDEAS TRUST vs. The CIT (Exemptions)

  Chandigarh bench