Section 40, 195 of Income Tax Act, 1961— TDS u/s 195— In the instant case, issue is with regard to the deletion of the addition made on account of the disallowance of Rs. 1,89,56,798/under Section 40(a)(ia) of the Act for non deduction of the tax of the source of commission payable to the foreign agent.

Held that—it can be safely concluded that the Commission income in the hands of foreign agent is not chargeable to tax in India in the given facts & circumstances. Once an income is not chargeable to tax in India then the question of deducting TDS under the provision of section 195 of the Act does not arise. Accordingly, we do not find any reason to interfere in the order of ld. CITA. Hence the ground of appeal raised by the revenue is hereby dismissed.[THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 VERSUS GUJARAT APOLLO INDUSTRIES LTD.][2019] 16 ITCD Online (8) [GUJARAT HIGH COURT]