2013 (2) TMI 99

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....ondent. ORDER 1. In this appeal, though the Revenue has raised four questions of law in the appeal memorandum, only the following two questions are pressed for consideration : "(a) Whether the Tribunal was justified in setting aside the disallowance of Rs. 3,93,72,038/- made by the AO under Section 40(a)(iii) of the Act when the assessee failed to deduct tax at source on such amount? (....

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....ded to the projects abroad by the respondent-assessee company. In the assessment year under consideration, the assessee had claimed an amount of Rs. 3.93 crores as expenditure being the overseas compensation paid to the employees of the oil companies seconded abroad under the head 'seconded personnel expenses'. The assessing officer by his order dated 29th March 2000 disallowed the amount of Rs. 3....

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....t arrived at that the seconded personnel are not the employees of the respondent-assessee, the amount paid as foreign allowances to the seconded personal is not liable for deduction of tax. In view thereof, the occasion to apply Section 40(a)(iii) of the Act does not arise. Consequently, question (a) in this appeal cannot be entertained. 5. Re. : question (b) (i)  The respondent-assesse....

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....The only issue to be considered is whether or not the income arising abroad in the previous year has suffered tax abroad. The case of the appellant - Revenue that the benefit of Section 91(1) of the Act would be available only when payments of taxes have been made in the previous year relevant to the assessment year under consideration. We find that the Tribunal correctly held that such a requirem....