Allowing the appeal of the revenue the Court held that the Commissioner (Appeals) as well as the Tribunal had completely failed to establish that material was produced by the assessee to demonstrate that the managing director had secured the business of the company from Italy and other European countries. The provisions of section 40A(2) which were applicable to the fact situation of the case had also not been taken into account by the Commissioner (Appeals) as well as the Tribunal. The order of the Tribunal setting aside the order of the Assessing Officer was not justified. Matter remanded to the Commissioner (Appeals).( AY. 2006-07)