No Section 40(a)(i) Disallowance for Purchases from Foreign AEs without PE in India: Delhi HC

PCIT Vs Mitsubishi Corporation (India) Pvt Ltd (Delhi High Court) Purchases from Foreign AEs Not Taxable Absent PE – No TDS, No 40(a)(i) Disallowance on AE Purchases- Non-Discrimination Clause Strikes -DTAA Protection Prevails- Delhi HC Delhi High Court dismissed Revenue’s appeal against deletion of disallowance u/s 40(a)(i) in respect of purchases made from foreign Associated Enterprises (AEs). The dispute related to A.Y. 2016-17 where the AO had disallowed ₹11.85 crore on the ground that the Assessee had not deducted tax at source u/s 195 on payments made to its overseas group enti...