Held that the Assessing Officer was not correct in law in holding that commission was paid to agents for rendering technical services in form of managerial services and since foreign agents did not have permanent establishment in India, no business profit was taxable in India. Disallowance was deleted. (AY. 2010-11-2012-13
Deccan Creations (P.) Ltd. v. DCIT (2022) 193 ITD 5 (Bang.) (Trib.)
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Fes for technical services-Sales commission to foreign agents-Permanent Establishment (PE) in India-Not liable to deduct tax at source-OECD Model Convention Arts, 5, 7, 12-DTAA-India-Australia. [S. 9(1)(i), 9(1)(vii), 195, Art. 7]