https://www.taxtmi.com/caselaws?id=306317 Pure reimbursement of lease line and related IT infrastructure charges paid to an overseas associated enterprise, on a cost-to-cost basis without markup, was held not to contain any income element and could not be re-characterised as royalty merely because it related to facility or bandwidth use. On that basis, disallowance under section 40(a)(i) for non-deduction of tax at source was deleted, with treaty protection remaining applicable on the facts. The claim for set-off and recomputation of brought forward unabsorbed depreciation was not rejected outright; it required verification of earlier year records, examination of any double disallowance, and fresh recomputation after giving effect to prior year relief, if any. en-us Thu, 12 Sep 2019 00:00:00 +0530 Sat, 21 Jan 2023 15:19:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=306317 Pure reimbursement of lease line and related IT infrastructure charges paid to an overseas associated enterprise, on a cost-to-cost basis without markup, was held not to contain any income element and could not be re-characterised as royalty merely because it related to facility or bandwidth use. On that basis, disallowance under section 40(a)(i) for non-deduction of tax at source was deleted, with treaty protection remaining applicable on the facts. The claim for set-off and recomputation of brought forward unabsorbed depreciation was not rejected outright; it required verification of earlier year records, examination of any double disallowance, and fresh recomputation after giving effect to prior year relief, if any. Case-Laws Income Tax Thu, 12 Sep 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=306317