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TMI Blog2016 (11) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. (2010 (11) TMI 1046 - ITAT DELHI), the Tribunal has allowed the expenditure incurred by the assessee under the head Vastu-Puja as revenue expenditure. Respectfully following the above order and considering the facts of the case, we hold that the order of the FAA does not suffer from any legal infirmity - Decided against revenue TDS u/s 195 - Disallowance of professional charges u/s.40 (a)(i) - non deduction of tax while making payments to non-resident companies - Held that:- All the payments made by an Indian assessee does not attract the provisions of Chapter XVIIB. It is a fact that payments were made to the non-residents who had not rendered any services in India and the job was carried out outside India. There is nothing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es related to the layout and location of the various items of its assets, that the payment made by the assessee would give advantage of enduring nature to it. He issued a show cause notice to the assessee asking it as to why the expenditure should not be disallowed as being capital nature. After considering the submission of the assessee, the AO held that expenditure incurred by it was a capital expenditure. He did not allow depreciation on the amount in question. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the First Appellate Authority(FAA).After considering the submission of the assessee and the assessment order, he held that the assessee had incurred consultancy expenditure, that the AO had not doubt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the facts of the case, we hold that the order of the FAA does not suffer from any legal infirmity. Confirming the same, we decide first ground of appeal against the AO. 6. Second ground deals with deleting the disallowance of professional charges of ₹ 43.60 lakhs u/s.40 (a)(i) of the Act. During the assessment proceedings, the AO found that the assessee had not deducted tax while making payments to non-resident companies. He held that the payments were in the nature of charges for technical services related to the advertising fields, that the claim made by the assessee was not allowable as per the provisions of section 40 (a) (i) of the Act, that fee for technical services was a specific category in itself. Finally, he added th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the FAA held that the payments were made on account of cost film production, Courier cost, dubs/ cassettes, cost of dubbing job, production estimate, that the payments were not made for obtaining any technical or professional services from the non-residents, that there was no element for royalty/interest involved in the payment, that the payments were made abroad, that the non-resident recipients were not having any permanent establishment in India, that there was no income received by the non-resident entities in India, that the provisions of section 4,5 and 9 of the Act were not applicable. Finally, he deleted the disallowance made by the AO. 8. Before us, the DR supported the order of the AO. The AR stated that the non-resident part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical services, as BCCI had not acquired technical expertise from the assessee which would enable them to produce the live coverage feeds on their own after the conclusion of IPL. One of us(JM)was party to that order. The facts of the case were that in that matter the assessee, a UK-based company, was engaged by the BCCI for capturing and delivering live audio and visual coverage of cricket matches, that the BCCI made the payment to the assessee, that the AO held that amount received by the assessee was in the nature of fee for technical services/royalty, that the dispute resolution panel held that the services were nothing but technical services as per section 9(1)(vii) of the Act as well as Article 13, that the assessee submitted that it d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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