Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 1138 - AT - Income TaxTDS u/s 194H - commission for daily collection purpose in respect of pigmy deposits without deduction of tax at source - ndividuals whom commission was paid for daily collection the same was treated as salary incomeHeld that:- Tax was required to be deducted by treating the payment as ‘salary’ in respect of three individual NNND Agents, hired by banks for daily collection purposes in respect of Pigmy deposits, in view of the letter dated 12.12.2007, issued by Under Secretary (ITB) from F.No. 275/75/2007-ITB. The Assessing Officer has wrongly treated the payment made to these individuals as commission u/s 194 H of the Act. In our opinion the Ld. CIT(A) has correctly decided the issue because if an organization is exempted then same is not liable to tax and therefore there is no need for deduction of tax. Therefore we find nothing wrong in the order of Ld. CIT(A) and confirm the same. Non TDS on interest paid to PEC University of Technology (Pension Fund Trust) - Held that:- The scheme of the provisions for deduction of tax at source applied not only to the amount paid, which bears the character of “income”, such as salaries, dividends, interest on securities, etc., but also to gross sums, the whole of which may not be income or profits in the hands of the recipient, such as payment to contractors or sub-contractors. The purpose of the provisions for deduction of tax at source in Chapter XVII-B of the Income-tax Act, 1961, is to see that from the sum which is chargeable under section 4 for levy and collection of income-tax, the payer should deduct tax thereon at the rates in force, if the amount is to be paid to a non-resident. They are meant for tentative deduction of income-tax subject to regular assessment. Thus from above it is clear that normally a person making payment is required to deduct the tax as per the provisions of the Act because this is a tentative deduction.Pension fund trust of the PEC University of Technology has not been approved so far and infact in reply to query raised by the branch, it was clearly admitted by the Ld. Counsel for the assessee that University has not been able to provide to the counsel any information on this. Therefore only presumption is that this trust has not been recognized so far. The income of trust which is not approved by the Commissioner is not exempted and therefore tax was required to be deducted by the bank.
|