The Tribunal allowed the appeals filed by the assessee holding that payments made to non-residents for services rendered outside India were not subject to tax deduction at source (TDS) under Section 195. The assessee had paid commission and sales promotion expenses to non-residents, which the Assessing Officer disallowed under Section 40(a)(ia) for failure to deduct TDS, despite the payees having no business connection or Permanent Establishment (PE) in India. The Tribunal noted that the payments were made for services related to exports, with no income deemed to accrue in India. The Tribunal concluded that the non-resident agents were not liable to Indian tax, and thus, the assessee was not obligated to deduct TDS. Consequently, the disallowance under Section 40(a)(ia) was deleted. (AY. 2012-13)