https://www.taxtmi.com/caselaws?id=68568 Technical know-how fees claimed under section 35AB were held deductible because the payment structure did not make the amount payable by the assessee to the foreign contractor outside India in the manner required for disallowance under section 40(a). Although the Revenue treated the fees as fees for technical services chargeable under the deeming rule in section 9(1)(vii) and alleged failure to deduct tax at source under Chapter XVII-B, the actual settlement was routed through the Government of India and the Crown Agents under the project arrangement. On those facts, section 40(a) was not attracted and the deduction under section 35AB remained available. en-us Tue, 30 Oct 2001 00:00:00 +0530 Thu, 31 Mar 2011 11:19:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=68568 Technical know-how fees claimed under section 35AB were held deductible because the payment structure did not make the amount payable by the assessee to the foreign contractor outside India in the manner required for disallowance under section 40(a). Although the Revenue treated the fees as fees for technical services chargeable under the deeming rule in section 9(1)(vii) and alleged failure to deduct tax at source under Chapter XVII-B, the actual settlement was routed through the Government of India and the Crown Agents under the project arrangement. On those facts, section 40(a) was not attracted and the deduction under section 35AB remained available. Case-Laws Income Tax Tue, 30 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=68568