Assessee made payments to non-residents towards IVTC charges for services rendered for assessee outside India. AO held  that as per amendment made by Finance Act, 2010 in provisions of section 9(1)(vii) with retrospective effect from 1976, FTS was liable to tax in India, even though services were rendered outside India accordingly the amount was disallowed . Tribunal held that a retrospective amendment cannot fasten obligation to deduct tax when not in force at time when payment was made and since non-resident service providers were not liable to tax in respect of FTS at time of remittance for services rendered outside India, no disallowance can be made. Similarly reimbursement of expenses in relation to providing said technical services also could not be disallowed under section 40(a)(i) for failure to deduct tax at source . Tribunal also held that  amendment to section 40(a)(ia) brought by Finance Act, 2014, restricting disallowance to 30 per cent of amount paid on which tax had not been deducted at source, will have no retrospective operation. (AY. 2008-09 to 2010-11)