Gsoftnet

No TDS liability of assessee on fees charged by NR bank.

Where a foreign bank charged certain sum terming it as interest on an Indian bank in process of negotiating letter of credit on behalf of its customer i.e. assessee, and said bank recouped amount from assessee, in view of fact that assessee had privity of contract with Indian bank and amounts were also paid to Indian bank only, transaction in question could not be said to fall within meaning of section 195 and, therefore, assessee was not required to deduct tax at source while making payments of interest

Where assessee claimed deduction of conveyance allowance paid to employees on lump sum basis without there being any correlation to expenses actually incurred and without showing that it was paid for defraying expenses wholly, necessarily and exclusively in performance of their duty, Tribunal was justified in rejecting said claim

Source: www.taxmann.com