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2018 (1) TMI 666 - AT - Income TaxDisallowance under section 40(a)(i) - assessee as the firm of chartered accountants and has paid sums to various entities on account of professional fee - asseessee firm explained that the payment was made to various nonresidents and it is not in the nature of income chargeable to tax in India and, thus, tax was not required to be deducted in terms of section 195 - Held that:- We find that the ITAT in its earlier orders has dealt with DTAA with recipients in all countries except Australia and Philippines. As regards DTAA with Philippines is concerned, the ld. Commissioner of Income Tax (Appeals) has given finding that the same is similar to DTAA with Mauritius. The DTAA with Mauritius has already been dealt with by the ITAT in its orders as above. Hence, we consider this issue also of payment recipients in Philippines covered in favour of the assessee. However, as regards the payment to KPMG Australia is concerned, the concerned DTAA has not been commented upon by the ld. Commissioner of Income Tax (Appeals). He has followed earlier year order in which there is no reference to DTAA to Australia. Hence, we remit this issue to the file of the ld. Commissioner of Income Tax (Appeals) to examine the issue of payment made to KPMG Australia with reference to the concerned DTAA . Disallowance u/s. 40(a)(i) - Held that:- As decided in assessee's own case the case of the assessee falls within the four corner of the ambit of the 'Principle of Mutuality'. Thus, we do not find any reason or ground to interfere in the order passed by learned Commissioner (Appeals) hence the appeal filed by the revenue is dismissed.
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