Section 40(a)(ia): No TDS from sum paid to 'All India Tennis Association' for seeking approval

No TDS from sum paid to 'All India Tennis Association' for seeking approval to conduct tennis tournament

[2015] 57 taxmann.com 179 (Delhi - Trib.)

IN THE ITAT DELHI BENCH 'C'

International Merchandising Corporation

v.

ADIT, Circle 1(2) International Taxation, New Delhi

Section 40(a)(ia), of the Income-tax Act, 1961 - Business disallowance - Interest etc. paid to a resident without deduction of tax at source (Payment to All India Tennis Association) - Assessment years 2006-07 to 2009-10 - Whether payment made by assessee to All India Tennis Association (AITA) for obtaining sanction to conduct a tennis tournament was not covered under any provisions of Chapter XVII-B of Act and, thus, assessee was not required to deduct tax at source while making said payment - Held, yes [Para 22] [In favour of assessee]