Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2005 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2005 (6) TMI 550 - ITAT MUMBAILiability to deduct tax u/s 195 - Reimbursement of expenses, underwriting fees and selling commission - Charging Interest u/s 201(1A) - Assessee in default - limitation as the order was passed beyond 4 years time - Validity of order passed by the Assessing Officer - HELD THAT:- Undisputedly the tax was to be deposited before 31st March 1994. However, the proceedings u/s 201(1) and 201(1A) were initiated by the Assessing Officer in 2000. As the order was passed on 24.01.2000, it is beyond the period of limitation of 4 years, which has been held as reasonable period for deciding such issues. Therefore, following the decision of the Tribunal, we hold that the orders of the Assessing Officer are barred by limitation. As the facts are identical in the present case. Therefore, we are not in hesitation in following the decision of the Tribunal in the case of Raymond Ltd. [2002 (4) TMI 891 - ITAT MUMBAI]. No contrary decision was brought to our knowledge that on similar circumstances the provisions of DTA are not applicable. Therefore, respectfully following the finding of the Tribunal, we hold that in the present case also the provisions of DTA are applicable. Therefore, the reimbursement of expenses, underwriting fees and selling commission cannot be considered as taxable in India even u/s 9(1)(vii). As we have held that DTA agreement with UK is applicable and payments made do not fall within the definition of fees for technical services" under Article 13.4 (c) of the agreement. Hence these were not taxable in India. Therefore, the assessee company was not liable to deduct tax from them it cannot therefore be treated as assessee in default u/s 201 (1). Consequently, no interest u/s 201 (1A) can be charged. Therefore, we delete the additions made, by holding the assessee was not in default in terms of section 201(1) and consequently charging interest in terms of section 201 (1A). In the result appeal of the assessee is allowed.
|