Taxes withheld by determining the income of non-resident under special regime (section 44BB) without approaching the tax officer will not lead to violation of withholding tax provisions

Chennai Bench of Income-tax Appellate Tribunal (the “Tribunal”), in the case of  Frontier Offshore Exploration (India) Ltd. Vs DCIT ITA No. 200/Mds/2009, held that where payment to a non-resident is covered under the special regime of section 44BB, withholding of appropriate tax by the payer through the application of the special regime and without approaching the Assessing Officer (“AO”) will not lead to any violation of withholding tax provisions. Accordingly, expenses cannot be disallowed for short withholding of taxe

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