The assessee had paid commission to non-resident agents located abroad for securing export orders. It was undisputed that the agents rendered services outside India and that the commission was remitted directly through RBI to the foreign agents. Relying on CBDT Circular No. 786, which clarified that export commission payable to foreign agents is not chargeable to tax in India, the assessee did not deduct TDS. The Tribunal deleted the disallowance, and the High Court affirmed the decision, observing that there was no adjudication by any authority that such commission was taxable in India. The Court also referred to the principle laid down in GE India Technology Centre  (P) Ltd  v. CIT  (2010) 327 ITR 456, SC) that a payer is responsible for making a judicious determination regarding TDS; if found wrong later, penal consequences follow. In the present case, the assessee’s decision was held unimpeachable, and the Tribunal’s order deleting the disallowance of commission payment was upheld.