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2011 (5) TMI 237 - AT - Income TaxDTAA - Disallowance u/s 40(a)(i) - TDS on link charges paid to non resident - Royalty or fees for technical services - the applicability of the DTAA has to be examined and then a conclusion has to be arrived at as to whether the payment by the Assessee to CGIT can be said to be "Royalty" - The applicability of the provisions of section 9(1)(vi) of the Act, would depend on nature of services provided by Asia Sat to its customers as per the agreement executed between them - The assessee is directed explain the exact manner in which the services are rendered by the non-resident for which payment was made by the assessee Regarding interest expenditure - it is evident that assessee has utilized Rs. 44,41,583 of its interest bearing funds for making investment, the income of which does not form part of the taxable income of the assessee - Held that: if it is found that the investment was made in the period when there was no overdrawn account from the bank Regarding Investment - Held that: where an assessee has his own funds as well as borrowed funds, a presumption can be made that the advances for non-business purposes have been made out of the own funds and that the borrowed funds have not been used for this purpose - It has been the submission of the assessee that at the point of time when the investment in shares was made there was no overdrawn account in the bank - the appeal is partly allowed by way of remand
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