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2019 (2) TMI 223 - AT - Income TaxTDS u/s 195 - payments made by the assessee to its UK and Singapore Subsidiaries as fall within the ambit of 'Fees for Technical Services' - disallowance u/s 40(a)(i) - PE in India - Held that:- As decided in assessee's own case BATLIVALA AND KARANI SECURITIES (INDIA) PVT. LTD. VERSUS DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-5, KOLKATA. [2016 (7) TMI 580 - ITAT KOLKATA] as per Article 7 of UK and Singapore Treaty, in the absence of PE in India, the business income also would not get taxed in India. Hence we hold that the payment made by the assessee to its subsidiaries is not chargeable to tax in India in the hands of the subsidiaries in India. The provisions of section 195(1) of the Act mandates a requirement that the income should be chargeable to tax in India to assume jurisdiction in India. In the instant case, it is proved beyond doubt that the subsidiaries do not have any income chargeable to tax in India - we have no hesitation in directing the Learned AO to delete the disallowance made u/s 40(a)(i) of the Act in respect of payments made to foreign subsidiaries. - Decided in favour of assessee
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