Dismissing the appeal of the revenue the Tribunal held that ; Payment of commission to foreign agent , the tax was not liable to be deducted hence no disallowances can be made .CBDT Circulars Nos.7 dated 22.10.2009, 23 dated 23 July 1969, 163 dated 29th May 1975 and 786 dated 7th February 2000 considered. ( ITA No. 434 & 446/Agra/2015, dt. 11.04.2018)(AY. 2010-11 , 2011-12)
ACIT v. Manufax (India) S. B. (Agra)(Trib) , www.itatonline.org
S.40(a)(ia):Amounts not deductible – Deduction at source – Payment of commission to foreign agent –Not liable to deduct tax at source, hence , no disallowances can be made .[ S .5(2)(b),9(1)(i) , 195 ]