TMI Blog2024 (3) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... by Ld. CIT(A), we set-aside the impugned order and restore the issue back to the file of Ld. AO qua disallowance against impugned payment - AO is directed to consider this claim of the assessee and revise the TDS demand and interest u/s 201(1) / (1A), if required, after meeting the plea raised by Ld. AR. The assessee is directed to substantiate its case. - Hon ble Shri Manoj Kumar Aggarwal, Am, And Hon ble Shri Manomohan Das, Judicial Member For the Appellant : Shri T.Banusekar (Advocate)-Ld. AR For the Respondent : Shri AR. V. Sreenivasan (Addl.CIT)- Ld. Sr. DR ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. The grievance of the assessee in aforesaid appeals for Assessment Year (AY) 2016-17 is demand raised by Ld. AO u/s 201(1) / 201(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee paid an amount of Rs. 59.83 Lacs to various non-residents without deduction of tax at source (TDS). The assessee submitted that foreign law firms had no permanent establishment in India and therefore no TDS was required on such payments. The assessee, in statement recorded on 18.01.2019, pleaded that the services rendered by foreign attorneys was legal services and not in the nature of technical services. The legal services were rendered outside India by law firms who had no place of business in India and therefore, no TDS was required. The legal services were not part of technical services under Fees for Technical Services (FTS). The assessee also submitted that make available clause was not satisfied. It was also pointed out tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t require any TDS. The Ld. AR also submitted that all these payees are covered under DTAA which has independent professional service clause in their DTAA. In support, the extract from respective DTAAs has been placed in the paper-book. We find that Ld. AO has already allowed benefit of such clause with respect to three countries. Considering the plea of Ld. AR and keeping in mind the fact that the issues raised by the assessee, in this regard, were not addressed by Ld. CIT(A), we set-aside the impugned order and restore the issue back to the file of Ld. AO qua disallowance against impugned payment of Rs. 34.22 Lacs. The Ld. AO is directed to consider this claim of the assessee and revise the TDS demand and interest u/s 201(1) / (1A), if req ..... X X X X Extracts X X X X X X X X Extracts X X X X
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