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2006 (1) TMI 56 - HC - Income TaxTDS - "Whether assessee was liable to deduct tax at source under section 192 and consequently liable to pay the demand of tax and interest under sections 201(1) and 201(1A) of the Act?" - "The lower authorities have simply proceeded on the assumption that the money credited in the account of Mr. Garnett with Hongkong & Shanghai Banking Corporation was paid by the assessee out of unknown sources. Such assumption, in our opinion, is based on surmises and conjectures and, therefore, no adverse inference can be drawn against the assessee. If the Assessing Officer could obtain the account of Mr. Garnett from the bank, he could also make enquiries as to who paid the amount in the account of Mr. Garnett. On the other hand, the assessee has been able to place the evidence that Quebecor World of Canada had paid this amount as advance to Mr. Garnett for discharging his income-tax liability in India. It further shows that this money was returnable by Mr. Garnett to the Canadian company on receiving his salary from India. Accordingly, it is held that the Revenue has not discharged its onus to prove that any payment of salary was made by the assessee to Mr. Garnett during the year under consideration - We see no reason to go beyond the finding of fact recorded by the Tribunal that there was no actual payment of the salary by the assessee to Mr. Garnett
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