No disallowance u/s 40(a)(i) for non-deduction of TDS u/s 194J on payments to expatriate employees seconded to taxpayer

Boeing India Pvt. Ltd. Vs ACIT (ITAT Delhi) Conclusion: When expatriate employees seconded to taxpayer had worked as employees of the taxpayer company, their salary had been rightly subjected to section 192 and Explanation to section 9(1)(vii) which apparently made it clear that salary would not fall within the expression ‘fee for technical services’ and had no applicability to the facts and circumstances of the case. Consequently, AO was not justified in disallowing u/s 40(a)(i) for non deduction of TDS on payments which were actually in the nature of ‘Fee for technical services (FTS)â€...