https://www.taxtmi.com/caselaws?id=206229 Compensation under an arbitration award arising from a trading contract with a non-resident foreign buyer was not taxable in India where the buyer had no permanent establishment in India; accordingly, no tax was required to be deducted at source and the disallowance under section 40(a) was deleted. The interest component was treated as part of the award amount and not as a separate taxable liability for disallowance purposes. An ad hoc telephone disallowance was also held unsustainable because no specific non-business use was shown. The substantive additions were therefore deleted, granting partial relief to the assessee. en-us Tue, 07 Sep 2010 00:00:00 +0530 Wed, 08 Aug 2012 15:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206229 Compensation under an arbitration award arising from a trading contract with a non-resident foreign buyer was not taxable in India where the buyer had no permanent establishment in India; accordingly, no tax was required to be deducted at source and the disallowance under section 40(a) was deleted. The interest component was treated as part of the award amount and not as a separate taxable liability for disallowance purposes. An ad hoc telephone disallowance was also held unsustainable because no specific non-business use was shown. The substantive additions were therefore deleted, granting partial relief to the assessee. Case-Laws Income Tax Tue, 07 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206229