Applicability of Limitation on deduction of expenses u/s. 44D on consideration other then Fees for Technical Services

Limitation on deduction of expenses under Section 44D of the Act cannot be invoked if the consideration received by the foreign company is not Fees for Technical Services as defined in India-USA tax treaty

Delhi bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Cray Research India Ltd v. JCIT [2010-TII-156-ITAT-DEL-INTL] (Judgement date 29 October 2010 Assessment Years 1989-90, 1993-94 & 1994-95)held that limitation on deduction of expenses under Section 44D of the Income-tax Act, 19

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