The assessee failed to deduct TDS on the commission paid to agents located outside India, hence the AO assessed a disallowance under section 40(a)(ia) of the Act. It was observed that the commission was paid outside of India. There was no situs in India and also he assessee’s modus operandi showed that he received income in India after deducting of commission made by the buyer outside of India. As a result, no income had been received or paid within India that was liable to TDS deduction, and therefore assessee was not required to deduct TDS in India. In light of the foregoing, the disallowance granted u/s 40(a)(ia) was deleted. (AY. 2013-14)