Held that payment made towards reimbursement of expenses there is no obligation to deduct tax at source. Disallowance was deleted. Payment made to foreign attorneys are not chargeable to tax under the provisions of section 195. Therefore the assessee was not required to withhold tax on the payments made. Disallowance u/s 40(a)(i)) is deleted. (AY. 2015-16)
Chander mohan Lall v. ACIT (2022) 193 ITD 352 / 215 TTJ 498/ 209 DTR 129 (Delhi)(Trib.)
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident attorneys-Professional fees-Reimbursement of expenses-No obligation to deduct tax at source-Disallowance was deleted-Article 12 of the OECD Model Convention. [S. 9(1)(vii), 195]