Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 2010 (7) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (7) TMI 3 - SC - Income TaxTDS - payment made to non-resident - section 195 - assessee in default u/s 201 - chartering of fishing vessels - AO observed that, "the income earned by the non-resident company was chargeable to tax u/s. 5(2) of the Income Tax Act. The assessee made payment to the foreign-company, the sums representing hire charges, without deducting taxes at source, thereby committed default under the provisions of Section 195. - He assessed the assessee as assessee in default - CIT(A) and ITAT confirmed the order of AO - appellant-assessee submits that there was no income chargeable which resulted to the non-resident company as no payment of any sum by the assessee to the non-resident company took place in India and therefore, the liability to deduct tax at source under Section 195 of the Income Tax Act or the liability under Section 201 of the Act did not arise. - Held that: it is obvious that the assessee was liable to deduct tax under Section 195 of the Income Tax Act on the payment made to the non-resident company and admittedly it having not deducted and deposited was rightly held to be in default under Section 201 of the Income Tax Act.
|