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2016 (11) TMI 432 - AT - Income TaxFeng Sui Consultancy charges - nature of expenses - revenue or capital - charges related to the layout and location of the various items of its assets - AO had treated the expenditure as capital expenditure because he was of the opinion that the expenditure was incurred in relation with the fixed capital assets - FAA has given a categorical finding of fact that the payment was made only on account of consultancy and it was for Re-allocation/re adjustment of furniture or certain other items - Held that:- FAA was justified in holding that expenditure did not bring into existence any asset. In the case of Estel Technologies Pvt. Ltd. (2010 (11) TMI 1046 - ITAT DELHI), the Tribunal has allowed the expenditure incurred by the assessee under the head Vastu-Puja as revenue expenditure. Respectfully following the above order and considering the facts of the case, we hold that the order of the FAA does not suffer from any legal infirmity - Decided against revenue TDS u/s 195 - Disallowance of professional charges u/s.40 (a)(i) - non deduction of tax while making payments to non-resident companies - Held that:- All the payments made by an Indian assessee does not attract the provisions of Chapter XVIIB. It is a fact that payments were made to the non-residents who had not rendered any services in India and the job was carried out outside India. There is nothing on record to prove that the non-resident entity had rendered any technical service to the assessee. The FAA had analysed the invoice issued by the nonresident and had found that payment was made only for job-work done and no royalty was paid by the assessee. The non-resident entity did not have any PE in India. Therefore, in our opinion, the FAA were justified in holding that the tax deducted at source provisions were not applicable for such remittances.- Decided against revenue
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