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III. Direct Tax Case law:
1. DCIT Vs. M/s. Hemlata Investment Pvt. Ltd., ITA No. 1211/Mum/2012 Date of Decision: 24.07.2013, ITAT Mumbai
Section 143(1) of The Income Tax Act, 1956
Whether an inadvertent mistake by the assessee in filing of the Return of Income Tax will lead to disallowance?
Held_No
The assessee
inadvertently made a mistake in filing the ITR as he could not mention
the amount of TDS in the e-return though the credit was allowed by NSDL
and same was appearing in the Form No. 26-AS of the department. The Ld.
CIT(A) held in favour of assessee and the same was upheld by the Hon’ble
ITAT.
(Please click here for judgment)
2. ITO Vs. M/s Pipavav Shipyard Ltd., ITA No. 2603/Mum/2011, Date of Decision: 07.08.2013, ITAT Mumbai
Section 201(1), 201(1A) of Income Tax Act, 1956
Whether
mere book entry will force the assessee to deduct tax at source even if
he actually doesn’t made any payment to the Non- Resident?
Held_No
The dispute is
regarding treating the assessee in default u/s 201 (1) and
consequential levy of interest u/s 201 (1A) for failure to deduct TDS in
respect of amounts payable to M/s Overseas Shipbuilding Cooperation
Centre in connection with consultancy work.
The actual
payment of the amount was dependent on certain regulatory compliances
and approvals which were ultimately not received. The payment had also
not been made. Therefore in such a situation no income on account of
such payment could said to have been accrued to the non-resident. The
assessee had neither made the payment nor had claimed any revenue
expenditure. Therefore only on the basis of entry in the books of
accounts, the assessee could not be held liable for deduction of tax at
source when ultimately the amount was found not payable nor it was paid,
income therefore had not accrued to the Overseas Shipbuilding
Cooperation Centre.
Therefore no tax was required to be deducted. The CIT(A) held in favour of the assessee & same was upheld by the ITAT.
(Please click here for judgment)
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