Tribunal held that all payments related to liaisoning and related services had been paid to non-resident company having no PE in India providing local assistance and local liaisoning services to assessee for its project in Saudi Arabia. No part of services had been either rendered or received in India. Thus, the AO erred in disallowing liaisoning and other services u/s 40(a)(i). (AY. 2008-09)
Dy.CIT v.Libra Techon Ltd. (2018) 195 TTJ 105 (UO) / 53 CCH 472/67 ITR 14 (SN) (Mum.)(Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-No part of services had been either rendered or received in India-Not liable to deduct tax at source on payments made to a non-resident company having no PE in India. [S. 195]