Section 40, 195 of Income Tax Act, 1961— Disallowance u/s 40— TDS— The issue is with regard to the deletion of the addition made on account of the disallowance of Rs. 2,93,56,350/under section40(a)(ia) of the Act for non deduction of the tax of the source of commission payable to the foreign agent.

Held that—
in view of the decision of this Court in the case PR CIT Vs. MGM Exports rendered in Tax Appeal No.309 of 2018, dated 11/04/2018 it was held that 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.

we are of the view that no error much less an error of law could be said to have been committed by the tribunal in passing the impugned order warranting any interference in the present appeal. There is no substantial questions of law in the present appeal.[PRINCIPAL COMMISSIONER OF INCOME TAX-2 VERSUS M AND B ENGINEERING LTD.] [2019] 15 ITCD Online (10) [GUJARAT HIGH COURT]