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 under section 9(1)(vii)(b) of the Income Tax Act. However, CIT(A) deleted the said addition. Being aggrieved, revenue has pr...