Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 653 - AT - Income TaxDeletion of disallowance u/s 40(a)(ia) of the Act - Foreign remittances made for design and development expenses – TDS not deducted u/s 195 r.w.s. 9(1)(vii) of the Act – Held that:- The decision in Ishikawajima Harima Heavy Industries Ltd Vs DIT [2007 (1) TMI 91 - SUPREME COURT ] relied - in order to bring a fees for technical services to taxability in India, not only that such services should be utilized in India but these services should also be rendered in India - the assessee did not have any tax withholding liabilities from foreign remittances for fees for technical services unless such services were rendered in India, and a fortiori no disallowance can be made under section 40(a)(i) for assessee's failure to deduct tax at source from such payments. The assessee did not have any liability under section 195 r.w.s. 9(1)(vii) to deduct tax at source from these payments – thus, no disallowance can be made in respect of these payment - there is no need to deal with the taxability of incomes embedded in these payments under the provisions of the applicable tax treaties – thus, the conclusions arrived at by the CIT(A) upheld – Decided against Revenue.
|