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2016 (11) TMI 253 - AT - Income TaxTDS u/s 195 - Disallowance of expenses - no particulars were filed in respect of the lease rentals paid, the legal and professional cost and travel cost were in the nature of provision and no TDS has been made in respect of the selling cost - Held that:- AR has filed voluminous documents and details as part of the paper book evidencing that the above expenses were actually incurred and the same were for the purpose of the assessee’s business. Similarly, with regard to the selling cost the Ld. AR has filed exhaustive details with regard to the payments made to various non-resident parties and the services rendered by the said parties alongwith copies of agreements and invoices. It is argued that the payments made to the said non-resident parties were for the purpose of marketing and consultancy services rendered outside India and the said payments were not exigible to tax deduction at source u/s 195 of the Act as there was no income accruing or arising in India in the hands of the said non-resident parties in view of Section 9(1)(vii) of the Act read with Section 90(2) and the treaty provisions as per the India-USA DTAA. Thus the finding of the CIT(A) that the AO has completely misconstrued the facts and legal provisions with regard to the above additions is correct. The AO has also not given any adverse material observation whatsoever against the above submission of the assessee and the voluminous details filed as part of the remand proceeding. The AO has also not been able to make out any case for TDS u/s 195 of the Act in the case of selling cost. In view of the above, the impugned additions made by the AO was rightly rejected by the CIT(A). - Decided against revenue
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