The AO vide his letter dated: 09.02.2009 proposed to treat the assessee as defaulter as per provisions of section 201(1) and 201(1A) of the Act for having not deducted tax at source u/s 195 of the Act in respect of the payments made as aforesaid to non-residents referred to above which partakes the character of fees for technical services as per the provisions of section 9(1)(vii) of the Act as well as relevant Double Taxation Avoidance Agreement (DTAA) between India and the respective countries of which the recipients of payment from the Assessee were tax residents.