Dismissing the appeal of the revenue the Tribunal held that ; proviso to section 40(a)(i) (substituted by Finance (No.2) Act, 2004) is not having retrospective effect and is not applicable for year 2002-03, hence not liable to deduct tax at source . ( AY. 2002 -03
DCIT v. Hazaria Cryogenic Engineering & Construction Management (P.) Ltd. (2018) 168 ITD 568 (Mum) (Trib.)
S.40(a)(i): Amounts not deductible- Payment to non –resident -Proviso amended by Finance (No.2) Act, 2004 is not applicable for year 2002-03, hence not liable to deduct tax at source [S.9(1)(i),195 ]