TMI Blog2013 (11) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... ave any right to ignore the circulars and to disallow non-deduction of tax at source under Section 195 and under Section 40 (a) (i) of the Act – Reliance has been placed on the judgment in Commissioner of Income Tax, Allahabad and another vs. M/s Model Exims Kanpur [2013 (9) TMI 742 - ALLAHABAD HIGH COURT] - Decided against the Revenue. - Income Tax Appeal No. - 315 of 2013 - - - Dated:- 13-11-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Appellant : Dhananjay Awasthi ORDER We have heard Shri Dhananjay Awasthi, learned counsel for the appellant. Shri Ashish Bansal appears for the respondent-assessee. This appeal has been preferred by the Income Tax department under Section 260A of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010 retrospectively effective from 01.06.1976 in sub-section (2) of Section 9." In the present case the return was filed on 23.9.2009 prior to issuance of the circular dated 22.10.2009. The questions raised in this appeal are covered by the judgment of this Court in Commissioner of Income Tax, Allahabad and another vs. M/s Model Exims Kanpur in Income Tax Appeal Defective No.164 of 2011 decided on 10.9.2013. This Court decided the questions of law in favour of the assessee and against the revenue on the following findings:- "The ITAT considered the submissions of both the parties and held relying upon its earlier decision in Dy. CIT-II, Kanpur v. Shri Sanjiv Gupta, Kanpur decided on 7.1.2011 that where a circular issued earlier crea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the circulars, which did not oblige the assessee to deduct TDS. The assessment in question for the assessment year 2007-08 would be governed by Circular, which was operative at the relevant time. The assessee was not entitled to deduct TDS. The department could not have taken different stand in subsequent years or assessment year 2007-08, when the circulars were operative and were not withdrawn. Circular No.7 of 2009 dated 22.10.2009 withdrawing earlier circulars became operative only from 22.10.2009. We also do not agree with learned counsel for the income tax department that there was obligation to deduct tax at source under Section 195 on the commission paid to non-resident recipient, who was not liable to pay tax in India. In such c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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