PCIT v. Gopakumaran Nair (2021) 283 Taxman 173 (Mad.) (HC)

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Commission charges to overseas agents-Service rendered outside India-Cannot be considered as fees for technical services-Not liable to deduct tax at source-Art, 12-OECD Model convention. [S. 9(1)(vii), 195]

Dismissing the appeal of the revenue the Court held that the assessee had paid commission charges to overseas agents for services rendered outside India and not any lump sum consideration for rendering managerial, technical or consultancy services, such payments could not be considered as fees for technical services under section 9(1)(vii) of the Act. Not liable to deduct tax at source. (AY. 2013-14, 2014-15)