Assessee had made payments to foreign agencies for availing investment and other cost estimates, arrange for arrival and departure including local transport, hotel and bookings for personnel deputed from India, arrangement of accommodation, automobile, medical insurance for seconded staff, etc. under agency agreement. Assessing Officer held that payment attracted provisions of section 9(1), therefore, TDS was deductible on such payment under section 195. Accordingly, he held assessee as assessee-in-default and raised demand under section 201(1)/201(1A) upon it. CIT(A) deleted the disallowance.On appeal the Tribunal held that since there was no business connection in India between agent and assessee nor agent had performed any job/operations in India, no part of sum payable by assessee could be regarded as arising in India so as to be chargeable to tax in India and, therefore, assessee had no obligation to deduct tax at source from said payment. Order of CIT(A) is affirmed. As regards foreign allowances, food and out pocket expenses paid to non-resident secondees is not chargeable to tax under section 5(2)(b) as there is no employer-employee relation ship between the assessee and secondees and the services in respect of which allowance in question were paid were rendered by the non-residents employees outside India. Assessee is not default under section 201(1), read with section 201(IA) of the Act. Order of CIT(A) is affirmed.  (AY. 1996-97 to 1998-99)