Disallowance u/s 40(a)(ia) unsustainable as payment to non-resident not taxable in India

ACIT Vs Red Ice Production Pvt. Ltd. (ITAT Delhi)

ITAT Delhi held that as payments made to the non-resident service providers not chargeable to tax in India, thus disallowance u/s 40(a)(ia) of the Income Tax Act on account of non-deduction of TDS is unsustainable.

Facts- AO proceeded to make disallowance of Rs. 1,58,85,633/- on account of expenses paid/remitted abroad without TDS. Notably, AO treated the payment made outside India as Fee for Technical Services as defined u

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