https://www.taxtmi.com/caselaws?id=344112 Disallowance under section 40(a)(i) is not sustainable where payments to non-resident agents are for services rendered outside India and the income is not deemed to accrue or arise in India. In that situation, no obligation to deduct tax at source arises under section 195. The services are also not treated as fees for technical services under section 9(1)(vii) on the facts noted, and the treaty provisions, including the protocol and non-discrimination clause, support the taxpayer's position. The governing principle stated is that a sum not chargeable to tax in India cannot trigger disallowance for failure to withhold tax. en-us Mon, 06 Feb 2017 00:00:00 +0530 Fri, 09 Jun 2017 05:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=344112 Disallowance under section 40(a)(i) is not sustainable where payments to non-resident agents are for services rendered outside India and the income is not deemed to accrue or arise in India. In that situation, no obligation to deduct tax at source arises under section 195. The services are also not treated as fees for technical services under section 9(1)(vii) on the facts noted, and the treaty provisions, including the protocol and non-discrimination clause, support the taxpayer's position. The governing principle stated is that a sum not chargeable to tax in India cannot trigger disallowance for failure to withhold tax. Case-Laws Income Tax Mon, 06 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=344112