Taxation of fees for technical services u/s 9(1)(vii) & disallowance u/s 40(a)(i) for failure to deduct TDS

Dis allowance U/s. 40(a)(i) cannot be made in a situation in which tax ability is confirmed only as a result of retrospective amendment of law Issue  – Dis allowance of Rs 52,07,883, in respect of leather testing charges paid to TUV Product Und Umwelt GmbH – a tax resident of Germany, under section 40(a)(i) of the Act, on the ground that the assessee failed to discharge his tax withholding obligations in respect of the same. In our considered view, the provisions of Section 40(a)(i) cannot be interpretated in such a manner so as to restrict the scope of section to only amounts remaini...