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2015 (12) TMI 968 - HC - Income TaxDisallowance under Section 40 (a) (i) - ITAT deleted the addition - whether the services rendered by the agents to the Assessee were in the nature of fee for technical services - Held that:- ITAT has analysed the agreements in question entered into by the Assessee with the foreign entities (agents) and concluded that the services rendered by the ‘agents’ were purely in the nature of advancement of the business of the Assessee which could not be categorized as managerial/technical or consultancy services. Consequently, it was held that the consideration paid by the Assessee to such agents could not be classified as fee for technical services. The Court finds that the view taken by the ITAT on the interpretation of clauses of the agreements in question was a plausible one. It is also consistent with the decision of this Court in DIT v. Pan Alfa Auto Elektrik Ltd. [2014 (9) TMI 706 - DELHI HIGH COURT] and the decision of CIT v. M/s. Grup ISM (2015 (6) TMI 10 - DELHI HIGH COURT). Consequently, this Court finds no substantial question arises for determination on this issue.- Decided in favour of assessee. Whether the payments could have been made by the Assessee to the foreign entities towards tour expenses without deduction of TDS? - Held that:- The CIT (A) has held against the Revenue on this issue. Where the recipient of the payment is not liable to tax in India, the question of deducting tax at source on payments made to such entity does not arise. - Decided in favour of assessee.
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