Consultancy fees, if not taxable as “fees for technical services”, is not taxable as “other income”

DCIT vs. Andaman Sea Food Pvt Ltd (ITAT Kolkata)
 The assessee paid consultancy fees to a Singapore company on which tax was not deducted at source. The AO held that the said consultancy fees were assessable as “fees for technical services” u/s 9(1)(vii) and that the failure to deduct TDS meant that the amount had to be disallowed u/s 40(a)(ia). This was reversed by the CIT (A). On appeal by the department to the Tribunal, HELD dismissing the appeal: