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2012 (9) TMI 389 - AT - Income TaxDisallowance under section 40(a )(i) of the Act – payment to non-resident - assessee submitted as per the provisions of section 44BB of the Income-tax Act, 1961 the income of the service provider was deemed to be 10 per cent of the aggregate amount and the rate of tax including surcharge came to nearly 41 per cent. Thus TDS amount comes to 4.1 per cent. – Held that:- On account of the special provisions of section 44BB, 10 per cent of the gross amount payable to the non-residents deemed as the income chargeable to tax in India - assessee has deducted tax at the specified rate on the 10 per cent of the Bare Boat charges paid to the Norway company who is the non-resident, computed as per the provisions of section 44BB - there is no violation of the provisions of section 195 in the assessee’s case which calls for a disallowance by invoking the provisions of section 40(a)( i) of the Act - In favor of assessee
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