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2016 (9) TMI 1508 - HC - Income TaxTDS u/s 195 - disallowance u/s 40(a)(ia) - while making payment of foreign commission, the assessee did not deduct tax at source - HELD THAT:- The contention of the assessee that the payee was not liable to any tax in India on such receipts was overcome by the Assessing Officer on the ground that this would be of no consequence. The Tribunal relying on the decision of Supreme Court in case of GE India Technologe Centre P. Ltd. vs. Commissioner of Income Tax and anr [2010 (9) TMI 7 - SUPREME COURT] overruled this view on the ground that when the receipt in hand of the recipient was not taxable, liability to deduct tax at source would not arise. When there is no dispute that the non-resident payee was not liable to pay any tax in India on the amounts received by the assessee, the act of the assessee of not deducting tax at source would not invite the disallowance envisaged under Section 40(a)(ia) of the Act. - Decided against revenue.
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