Sec. 32 & 115JB of Income Tax Act, 1961 – MAT – The assessee pointed out that disallowance under Section 40(a)(i) can be made only if taxes are not withheld on income chargeable to tax in India. The payment was made to Royal and Sun Alliance, U.K. to settle the amounts of various surveyors on cost to cost basis and the surveyor does not make available any technical knowledge which can independently be applied by the assessee and consequently, CIT(A) held that the payment by the assessee would not be taxable as fees for technical services in the hands of the recipient. In the absence of permanent establishment, the income in the hands of the recipient is also not taxable in India. High Court dismissed the appeal of the revenue holding that:– The above view taken by the CIT(A) was rightly affirmed by the Tribunal – ROYAL SUNDARAM ALLIANCE INSURANCE CO. LTD. [2020] 423 ITR 122 (MAD)