Dismissing the appeal of the revenue the Court held that, an assessee paying any sum to a non-resident is not liable to deduct tax if the sum is not chargeable to tax under the Act, as the expression in section 195(1) of the Act is chargeable under the provisions of the Act. (AY. 2006-07)
PCIT v. Dishman Pharmaceuticals and Chemicals Ltd. (2019) 417 ITR 373/ 112 taxmann.com 91 /(2020) 190 DTR 307 (Guj.)(HC)
S. 195 : Deduction at source-Non-resident-When the payment is not taxable–Not liable to deduct tax at source.