TDS Not Deductible on Supplemental Rent for Foreign Aircraft Lease

Spice Jet Limited Vs Addl. CIT (ITAT Delhi) ITAT Delhi held that supplemental rent/maintenance reserve would be exempt from tax in the hands of lesser in India as per Section 10(15A) of the Act and hence, no disallowance u/s 40(a)(ia) for non-deduction of TDS. Hence, TDS not deductible on such amount paid to foreign company for acquiring aircraft on lease. Facts- The Assessee company debited an amount of Rs.168,72,51,723/- under the head “supplementary rent” in its profit and loss account which has been paid to foreign companies/entities from whom the assessee acquired aircrafts on lease. ...