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2008 (1) TMI 477 - AT - Income TaxLiable for deduction of TDS u/s 195 - Payment on Reimbursement of expenses to Non-resident towards air fare, accommodation and subsistence cost for the personnel - Entered into agreement for rendering technical services - HELD THAT:- The assessee did not have any PE in India. There is absolutely no dispute on this point. But this fact is relevant if the income in question bears the character of business income. It is not relevant in the context of chargeability of tax on fees for technical services. The agreement was entered into for rendering technical services. The services of the experts of the foreign company were requisitioned in that connection. There is absolutely nothing on record to indicate that how such reimbursement could be termed as business income of the assessee. The payments of reimbursement were made in the process of executing the agreement. The expenditure in question was part and parcel in the process of advice of technical character. As such the payment on account of reimbursement also attracts the provisions of s. 195 of the Act. We have gone through the reasonings adduced in the impugned order. In our opinion the CIT(A) took a correct view in the matter and his order calls for no interference on this count. Accordingly we uphold the same. In the result the appeal of the assessee stands dismissed.
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