https://www.taxtmi.com/caselaws?id=368273 Tax deduction at source under section 195 applies only where the payment is chargeable to tax in India, so purchase payments to non-resident foreign sellers without an income element do not attract deduction. On that basis, disallowance under section 40(a)(i) is not justified merely because the recipient is a non-resident, and the related addition was deleted. The Indo-USA DTAA non-discrimination clause, read with section 90(2), was treated as supporting the position that payments to non-residents should not face a more burdensome tax consequence than comparable resident payments. en-us Mon, 01 Oct 2018 00:00:00 +0530 Fri, 05 Oct 2018 12:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=368273 Tax deduction at source under section 195 applies only where the payment is chargeable to tax in India, so purchase payments to non-resident foreign sellers without an income element do not attract deduction. On that basis, disallowance under section 40(a)(i) is not justified merely because the recipient is a non-resident, and the related addition was deleted. The Indo-USA DTAA non-discrimination clause, read with section 90(2), was treated as supporting the position that payments to non-residents should not face a more burdensome tax consequence than comparable resident payments. Case-Laws Income Tax Mon, 01 Oct 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=368273