Held that the amount paid by the assessee was chargeable to tax in entirety in the hands of the non-resident. The Assessing Officer was justified in making the disallowance under section 40(a)(ia) owing to the assessee’s failure to deduct tax at source from payment to its associated enterprise, NVB, which was chargeable to tax in the hands of the foreign entity.(AY.2012-13)
Bekaert Industries P. Ltd. v. Dy. CIT (2022) 194 ITD 201 / 93 ITR 462 (Pune)(Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Non-Resident rendering services of Information Technology infrastructure-Royalty-Liable to deduct tax at source-Disallowance is justified-DTAA-India-Portugal. [S. 9(1)(vi)]