Held, that the reimbursement made by the assessee towards the expatriate employees could not be regarded as fees for technical services, therefore was not taxable hence not liable to deduct tax at source. The Assessing Officer was directed to delete the disallowance made under section 40(a)(i) of the Act. (AY.2016-17).
Toyota Boshoku Automotive India Pvt. Ltd. v. ACIT (2022)98 ITR 363 (Bang) (Trib)
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Reimbursing salary of expatriates to foreign companies-not a fee for technical services-Disallowance not justified. [S. 9(1)(vii), 195]