Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 1053 - AT - Income TaxApplicability of Section 40(a)(ia) - non deduction of tds ‘professional charges’ - AO disallowed the amount on the reason that the services rendered by the said person are technical services and as per the provisions of Section 9(1)(vii)(b), the payment was liable for TDS - India-USA DTAA - period of stay in India - Held that:- CIT(A) made a mistake in calculating days by including day of arrival and day of departure also for the period of stay. One of the days is to be excluded to consider the period of stay. If that is taken into consideration, for the seven trips made by Mr. Joe Mitchell, the period of stay will come to eighty six days i.e., less than ninety days. Looking at either way, as the amount is not taxable in India applying the provisions of DTAA, question of disallowance u/s. 40(a)(ia) does not arise. Moreover, from the record, no steps were taken by the AO u/s. 201 / 201(1A) under the provisions of TDS. Keeping the amendment brought to Section 40(a)(ia) on this issue also, we have to hold that the amount is not disallowable u/s. 40(a)(ia). Accordingly, assessee’s grounds are allowed. AO is directed to exclude the amount and allow the same as deduction. - Decided n favour of assessee.
|