Incomes chargeable to tax U/s. 172 cannot be subject to TDS under chapter XVII-B

Brief of the case:

The Hon’ble Bombay HC in the case of CIT vs. Dempo and Co. P. Ltd that when the non- resident payee is assessable under special provisions contained in Sec 172 , then the payer cannot be made responsible for deducting tax at source on the payments made to non-resident.  Therefore, disallowance of expenditure cannot be justified. However, the Divisional Bench of High court referred the case to Larger Bench due to disagreement with the view taken by Division Bench in earlier case on ide

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