https://www.taxtmi.com/caselaws?id=327716 The Delhi HC held that an administrative fee paid to a US payee was deductible because Article 26(3) of the Indo-US DTAA treated the payment as an "other disbursement" and the domestic disallowance under section 40(a)(i), as then framed, imposed a more onerous condition on non-resident payments than on resident payments; the treaty therefore prevailed under section 90(2). It further held that expenditure for 1 January 2000 to 31 March 2000 accrued only when the liability crystallised after RBI approval and the first debit note was raised. Expenditure for 1 January 2001 to 31 March 2001 was also allowable, as FEMA had removed the prior approval requirement and the liability was reasonably estimable despite later billing. en-us Fri, 13 May 2016 00:00:00 +0530 Wed, 14 Jan 2026 18:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=327716 The Delhi HC held that an administrative fee paid to a US payee was deductible because Article 26(3) of the Indo-US DTAA treated the payment as an "other disbursement" and the domestic disallowance under section 40(a)(i), as then framed, imposed a more onerous condition on non-resident payments than on resident payments; the treaty therefore prevailed under section 90(2). It further held that expenditure for 1 January 2000 to 31 March 2000 accrued only when the liability crystallised after RBI approval and the first debit note was raised. Expenditure for 1 January 2001 to 31 March 2001 was also allowable, as FEMA had removed the prior approval requirement and the liability was reasonably estimable despite later billing. Case-Laws Income Tax Fri, 13 May 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=327716