https://www.taxtmi.com/caselaws?id=351323 Consultancy fee paid for pursuing a proposed acquisition in bankruptcy proceedings was analysed for deductibility under section 37(1) by reference to the true nature of the acquisition, the assessee's business model, and whether the expenditure was capital or revenue in character; because the existing material was insufficient, the matter was remanded for fresh factual adjudication. On withholding tax, the fee was treated as consideration for professional services rendered by a US resident firm, and Article 15 of the Indo-US DTAA was applied to conclude that the income was not chargeable to tax in India on the stated facts. Accordingly, no tax was deductible under section 195 and disallowance under section 40(a)(i) did not apply. en-us Fri, 08 Sep 2017 00:00:00 +0530 Thu, 23 Nov 2017 13:33:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=351323 Consultancy fee paid for pursuing a proposed acquisition in bankruptcy proceedings was analysed for deductibility under section 37(1) by reference to the true nature of the acquisition, the assessee's business model, and whether the expenditure was capital or revenue in character; because the existing material was insufficient, the matter was remanded for fresh factual adjudication. On withholding tax, the fee was treated as consideration for professional services rendered by a US resident firm, and Article 15 of the Indo-US DTAA was applied to conclude that the income was not chargeable to tax in India on the stated facts. Accordingly, no tax was deductible under section 195 and disallowance under section 40(a)(i) did not apply. Case-Laws Income Tax Fri, 08 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=351323