Obligation to deduct tax not arise on payment made to foreign company unless such payment is chargeable to tax in India

DCIT vs. M/s Calcutta Test House Pvt. Ltd. (ITAT Delhi) – Non-resident lessor does not have PE or business connection in India on account of leased assets used in India but delivered outside India, provided the lease agreement is entered on principle to principle basis. Agreement signed on 18.1.1997 between the assessee and M/s Oceaneering International AG (OIAG) registered at Switzerland. The OIAG was stated to be sole, lawful and absolute owner of the machinery provided to the assessee. It was further stated that actual physical possession of the said machinery could be delivered by th...