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2017 (12) TMI 1669 - AT - Income TaxTDS u/s 195 - Non-deduction of TDS on the payments made to foreign partiesfor the services rendered in various foreign destinations - addition u/s. 40(a)(i)/40(a)(ia) - DTAA provisions - Make available Clauses' - PE in India - HELD THAT:- These entities who have rendered the impugned services admittedly have no presence in India by way of permanent establishment and no business connection in as much as that the services were rendered outside India. It would suffice to hold that the basic ingredients to trigger the operation of Sec.9(1)(i) are conspicuous in their absence in the above services as explained by the assessee, supra. The payment(s) made to them would not be exigible to tax unless and until a case has been made out that they are in the nature of the services within the meaning of Sec. 9(1 )(vi) or 9(1)(vii) being “royalty “ or "technical services". The Revenue could not assail the assessee’s above contentions . Since the above payments are not chargeable to tax in India u/s 9(1)(vii) r.w.s. 195, the provisions of s.40(a)(i) will not be applicable. - Decided against revenue Addition on account of Bogus Purchase - HELD THAT:- As before the CIT(A}, the assessee has filed details like Receipt Notes, Payment Vouchers, Retail Invoice and bank statement in which the payment of ₹ 3,17,126 was cleared. Still the Revenue has raised a ground that 'the assessee did not furnish any material evidence to prove that the transaction took place in the earlier A.Y.2011-12.- Decided against revenue Disallowance of PF & ESI - employees contribution & ESI as remitted to Government before the due date and filed return u/s. 139(1) - HELD THAT:- As placing reliance on the Delhi High Court's decision in the case of Aimil Ltd [2009 (12) TMI 38 - DELHI HIGH COURT] that if the assessee had deposited employees contribution towards PF and ESI after the due date as prescribed under the relevant Act, but before the due date of filing of the return under the Income Tax Act, no disallowance could be made in view of the provisions u/s.43B as amended by Finance Act 2003. Respectfully following the ratio laid down by the Hon'ble High Court, the plea of the appellant is allowed. This ground of appeal is allowed
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