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2017 (6) TMI 647 - AT - Income TaxTDS u/s 195 - Addition towards professional fees - payment to non-resident outside India - Held that:- From the facts of the case it is clear that the assessee had incurred expenditure of ₹ 25,89,854/- related to documentation outside India and the services were rendered by company situated outside India. Therefore, it is crystal clear that for services rendered by M/s. Mayor Brown LLB., outside India, income cannot be said to have accrued or arisen in India. Hence, we do not find it necessary to interfere with the order of the Ld.CIT(A) on this issue. Deletion of the disallowance u/s.14A - Held that:- We find that this issue is covered by our recent decision in the case of M/s. SIDD Life Sciences [2017 (4) TMI 915 - ITAT CHENNAI] we hereby remit the matter back to the file of the Ld.AO with directions to pass appropriate Order in the light of the afforested decision after examining the facts of the case. We also make it clear that if the assessee has admitted any expenses to have been incurred relating to exempt income as pointed out by the Ld.CIT(A) in his order at para No.5.2.1, then to that extent disallowance has to be sustained by virtue of Section 14A of the Act. Interest income earned from intercorporate deposits treated as business expenditure - Held that:- The assessee has parked its surplus funds in other companies and earned interest. Such income has to be necessarily assessed under the head ‘Income from other source’ as per Section 54 of the Act, as held by the Ld.AO. Hence, we hereby direct the Ld.AO to assess the interest earned from the bank and inter-corporate deposits under the head ‘Income from other source’.
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