https://www.taxtmi.com/caselaws?id=787163 A disallowance under section 40(a)(i) for alleged failure to deduct tax at source on payments to a non-resident must be tested against the provisos to section 40(a)(i) and section 201(1) before it is sustained. On the facts noted, a specific show-cause notice had already been issued and the assessee was able to respond, so the natural justice objection based on lack of proper notice did not survive. However, the merits of the disallowance required fresh examination because the lower authorities had not considered the statutory provisos and the assessee's status under section 201(1) in the correct legal framework. en-us Wed, 25 Feb 2026 00:00:00 +0530 Fri, 27 Feb 2026 08:36:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787163 A disallowance under section 40(a)(i) for alleged failure to deduct tax at source on payments to a non-resident must be tested against the provisos to section 40(a)(i) and section 201(1) before it is sustained. On the facts noted, a specific show-cause notice had already been issued and the assessee was able to respond, so the natural justice objection based on lack of proper notice did not survive. However, the merits of the disallowance required fresh examination because the lower authorities had not considered the statutory provisos and the assessee's status under section 201(1) in the correct legal framework. Case-Laws Income Tax Wed, 25 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787163