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TDS U/s 195 on payment of commission to foreign agent – not to be deducted (Judgement)

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 range of income considered to appear in India for the purpose of section 5(2)(b) read with section 9(1)(i) of Income Tax act, 1961. Therefore, deducting tax under section 195 did not appear and disallowance in question was not justified.

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