TMI Blog2000 (4) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... this amount before issuance of the no objection certificate. The Assessing Officer was of the view that the above expense was in the nature of a constructive receipt in the hands of the foreign company and, therefore, the same was liable to tax under section 9(1)(vii) read with section 115A and section 44D of the Income-tax Act, 1961. Accordingly, the Assessing Officer directed the assessee to deduct tax at source on all payments irrespective of the fact whether they are remitted to the foreign company or were spent on the foreign technicians of that company in India. Being aggrieved, the assessee preferred an appeal to the Tribunal which, following its decision in the earlier years, held that the foreign technicians were required to travel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransmission, Corporation of Andhra Pradesh Ltd. v. CIT [1999] 239 ITR 587. In our view, the judgment of the Supreme Court has no application to the facts of the present case. In that matter, the person making payment did not file an application before the Assessing Officer for determination of the sum chargeable to tax. It was contended on behalf of the assessee in that matter that when payments made to the non-resident, were not entirely income, but a trading receipt then there was no question of deduction of income-tax at source as the said section did not provide for it. It was contended that what is taxable under the Income-tax Act is pure income or profits and not the gross sum. This argument was rejected by the Supreme Court by holdin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at source. In this matter, we are only concerned with the expenses incurred by the assessee for purchase of tickets from Air India and for local expenses. For all the earlier years, the assessee has succeeded before the Tribunal. Moreover, the said provision under section 195 is only for tentative deduction of income-tax subject to regular assessment and the rights of the parties are not in any manner adversely affected. Even in the earlier years, in the present matter, the Tribunal has clearly stated that its decision under section 195(2) should not be treated as a conclusion in the determination of income in the case of a foreign company. Hence, no substantial question of law arises. Appeal is accordingly dismissed. - - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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