Dismissing the appeal of the revenue the Court held that; where the non-resident was rendering services outside India, the commission earned by such non-resident for acting as an agent for Indian exporter would not accrue in India. In the case in hand the foreign agents are not residents of India and, thus, squarely covered by the said judgment passed by the Apex Court in. CIT v. Toshoku Ltd. (1980) 125 ITR 525 (SC). (AY. 2012-13)
DCIT v. Mc Fills Enterprise (P.) Ltd. (2019) 174 ITD 667 (Ahd.)(Trib.)
S. 40(a)(i) : Amounts not deductible-Deduction at source -Non-resident–Foreign agent-Commission–No permanent establishment in India–Carrying activities outside India-Payment is neither taxable nor can be treated as payment for rendering any managerial, technical or consultancy services [S. 9(1), 195]