The obligation to deduct the tax at source would arise only when the payment was chargeable under the provisions of the Income-tax Act. This observation was made in the context of Section 40(a)(i) of the Income-tax Act, 1961. The appellant / assessee had made the payment of Rs 1,52,850/- to a non- resident Indian. The issue was as to whether the same could be allowed as deduction given the fact that the appellant / assessee had not deducted the TDS on the same.
(Click here for Judgment)
2. VAN OORD ACZ INDIA (P) LTD. Vs. COMMISSIONER OF INCOME TAX [Delhi High Court]
In case non resident recipient/payee in its own assessment is found non chargeable to tax then only payer can claim immunity from non TDS u/s 195, otherwise without AO's concurrence u/s 195(2) it seems not possible on part of payer to take a suo-motto view that payment is non chargeable to tax in India.
(Click here for Judgment)
3. COMMISSIONER OF INCOME TAX Vs. HUTCHISON ESSAR TELECOME LTD [Delhi High Court]
The proceedings under Sections 201/ 201(A) were admittedly initiated beyond the period of three years from the end of the relevant Assessment Year as also beyond the period of four years from the end of the Financial Year. Consequently, the Tribunal has correctly concluded that the proceedings were beyond time.
(Click here for Judgment)
What's New
a. Central Excise – Modvat - assessee was entitled to avail of MODVAT credit in respect of steel plates and M S channels used in fabrication of chimney for diesel generating set, by treating these items as capital goods- Supreme Court (Click for detail)
b. Sebi plans a Standard Set of Disclosure norms for MFs (Click for detail)
c. MCA mulls Accounting oversight Board (Click for detail)
d. Put Asba forms on websites: Sebi to bourses (Click for detail)
e. Reimbursement of expenses cannot be subject matter of disallowance under section 40(a)(i) (Click for detail)
f. Whenever assessee incurs expenditure for repair and maintenance of a building taken on lease for carrying on its business activity, it has to be allowed u/s 30(a)(i) provided same does not fall in capital field (Click for detail)
g. When gift is not genuine, addition under section 68 is warranted (Click for detail)
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Thanks for your valuable time
"Voice of CA"
CA. Sanjay Kumar Agarwal, Founder - Voice of CA
Member Central Council - ICAI
Former Chairman - NIRC
Mob : 9811080342, agarwal.s.ca@gmail.com
CA. Kapil Goel, Moderator-Direct Taxes
Mob:9910272806, cakapilgoel@gmail.com
CA. Sidharth Jain, Co-Moderator
sidhjasso@yahoo.com
CA. Mukesh K Bansal, Co-Moderator-FEMA
Mob:9540022533, mukbansal80@gmail.com