https://www.taxtmi.com/caselaws?id=219748 Income payable to a foreign entity does not accrue for tax purposes where remittance is contingent on Reserve Bank approval; booking the amount as expenditure does not by itself establish accrual, so the related addition cannot be sustained. Fees for technical services under a treaty using payment-based wording are taxable in India only upon actual payment or receipt, rather than on mere book accrual. Where no payment was made during the relevant year, the treaty condition for taxation is not met. The substantive addition was therefore deleted on both the accrual and treaty-payment grounds. en-us Fri, 21 Dec 2012 00:00:00 +0530 Mon, 24 Dec 2012 15:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=219748 Income payable to a foreign entity does not accrue for tax purposes where remittance is contingent on Reserve Bank approval; booking the amount as expenditure does not by itself establish accrual, so the related addition cannot be sustained. Fees for technical services under a treaty using payment-based wording are taxable in India only upon actual payment or receipt, rather than on mere book accrual. Where no payment was made during the relevant year, the treaty condition for taxation is not met. The substantive addition was therefore deleted on both the accrual and treaty-payment grounds. Case-Laws Income Tax Fri, 21 Dec 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=219748