Dismissing the appeal of the revenue the Tribunal held that, since the payments made on account of purchase of bearings were not in the nature of interest or royalties or fees for technical services or other sum chargeable to tax in India, the assessee was not required to deduct tax at source hence no disallowance can be made. (AY. 2008-09)
ITO v. FIlco Trade Centre (2019) 69 ITR 99 (Delhi)(Trib.)
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident–Purchase of bearings–Not liable to deduct tax at source –No disallowances can be made-DTAA-India-USA. [S. 195, Art. 26(3)]