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2019 (4) TMI 275 - ITAT DELHIDisallowance u/s 40(a)(ia) - failure to deduct TDS u/s 195 - Fee for Technical Services - payment made by the assessee to the Spanish company - Indo-Spain DTAA - whether in view of the Protocol to India-Spain DTAA, a restrictive meaning of the “Fee for Technical Services’ has to be read in the context of Indo- Spain DTAA? - HELD THAT:- Referring the decision of in Steria (India) Ltd., vs. CIT [2014 (5) TMI 629 - AUTHORITY FOR ADVANCE RULINGS] and para 7 of the Protocol between India and Spain, the restrictive meaning of ‘Fee for Technical Services’ appearing in Article 13(4) (c ) Indo-UK DTAA must be read as forming part of Indo-Spain DTAA as well and, therefore, the payment made by the assessee to the Spanish company for fabric testing would not constitute fee for technical services and consequently, section 195 of the Act has no application to such a receipt. With this view of the matter, we find it difficult to sustain the addition and accordingly, direct the learned AO to delete the same. - Decided in favour of assessee
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