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2013 (5) TMI 45 - HC - Income TaxDefault U/s 201(1) & Interest U/s 201(1A) of the Income Tax Act - TDS on royalty - Held that:- The Tribunal held that once the agreement itself is cancelled, consequential payment of royalty also stood cancelled - For the entire period from inception up to 30th July 2002 there was no liability for making payment on behalf of the assessee - When there is no liability to pay royalty and consequential interest, there was no liability to deduct TDS. It is clear that agreement with regard to payment of royalty was cancelled, no royalty was payable and therefore, the question of deducting TDS on such royalty does not arise. These facts are not in dispute - Therefore, in the facts and circumstances of the case we are of the view that the order passed by the Tribunal is correct.
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