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2015 (8) TMI 751 - AT - Income TaxNon deduction of tax at source u/s 195 - survey fee paid to the non-residence surveyors - CIT(A) held that the said payment did not constitute either FTS or FIS in terms of the respective DTAAs and therefore, the assessee was not required to deduct tax at source - Held that:- As in the assessee’s own case for assessment year 2006-07 conclude that the payments made to the non-resident surveyors of countries with DTAAs having ‘make available’ clause or having MFN clause were not taxable as the non-resident surveyor did not make any technical know-how, etc. available to the assessee company. In coming to such conclusion, the Tribunal also referred to similar findings of the Dispute Resolution Panel (DRP) in assessee’s own case for assessment year 2008-09. Therefore, so far as the payments made to nonresident surveyors of countries with DTAAs having ‘make available’ clause in the Article on ‘Fees for technical services’, the Tribunal deleted the disallowance u/s 40(a)(ia) of the Act. Ostensibly, for the reason that there was no requirement to deduct tax at source on such payments. In so far as the present Grounds of Appeal for assessment year 2005-06 are concerned, the same relate to the payments made to surveyors in UK, Netherland, Singapore which are countries with whom there are DTAAs and their Article on ‘Fees for technical services’ have a ‘make available’ clause. Therefore, we find no error in the part of the CIT(A) in allowing the relief to the assessee. - Decided in favour of assessee.
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