2011 (9) TMI 157 - HC - Income Tax

Liable to deduct tax at source or not - Fees for technical services paid by the assessee to its head office - Held that - Income Tax Appellate Tribunal is that the payment made by the assessee to its head office was in the nature of reimbursement of technical expenses and accordingly the amount being not taxable in India the assessee is justified in not deducting tax at source - Consequently no disallowance could be made on the said amount of fees for technical services paid by the assessee to its head office.

Summary

The Bombay High Court upheld the Income Tax Appellate Tribunal's decision that fees for technical services paid by the assessee to its head office were not taxable in India, so the assessee was not liable to deduct tax at source. The appeal was dismissed with no costs.