https://www.taxtmi.com/caselaws?id=64706 Article 26(3) of the India-US DTAA was applied to neutralise the discriminatory effect of section 40(a)(i), so disallowance of remittance to a non-resident could not be sustained even if the sum was otherwise chargeable to tax in India. Administrative fee for 1-1-2000 to 31-3-2000 was deductible because the liability accrued only when RBI approval was granted, not in the earlier service period, and the fee for 1-1-2001 to 31-3-2001 was also allowable as the liability had arisen during the year with reasonable certainty under the then current account regime. Leasehold improvement expenditure was treated as revenue, foreign exchange fluctuation loss was allowable on accrual, and the stock discrepancy addition was reduced because the records were unreliable but the original estimate was excessive. en-us Tue, 28 Feb 2006 00:00:00 +0530 Tue, 19 Mar 2024 10:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64706 Article 26(3) of the India-US DTAA was applied to neutralise the discriminatory effect of section 40(a)(i), so disallowance of remittance to a non-resident could not be sustained even if the sum was otherwise chargeable to tax in India. Administrative fee for 1-1-2000 to 31-3-2000 was deductible because the liability accrued only when RBI approval was granted, not in the earlier service period, and the fee for 1-1-2001 to 31-3-2001 was also allowable as the liability had arisen during the year with reasonable certainty under the then current account regime. Leasehold improvement expenditure was treated as revenue, foreign exchange fluctuation loss was allowable on accrual, and the stock discrepancy addition was reduced because the records were unreliable but the original estimate was excessive. Case-Laws Income Tax Tue, 28 Feb 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64706