Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 585 - HC - Income TaxTDS u/s 195 - commission paid to the subsidiary for services rendered - non deduction of tds - Held that:- GE International had in AY 1998-99 paid tax on gross basis as regards the payment received from the Assessee, the question of again remanding the matter to the AO for verification of the above tax payment by GEI was wholly unnecessary. Instead a categorical consequential finding ought to have been rendered by the ITAT that there was no obligation on the Assessee to deduct any tax under Section 195 of the Act on the payments made to GEI in Japan and therefore the question of disallowance under Section 40 (a) (i) of the Act of the payment of ₹ 9.10 crores in the AY 1998-99 did not arise. Consequently, question (i) framed above is answered in the negative i.e. in favour of the Assessee by holding that the ITAT ought not to have remanded to the AO the issue concerning the tax paid by GEI on the payments made to it by the Assessee. The claim for deduction of ₹ 9.10 crores ought to have been allowed in full to the Assessee in the AY in which was incurred i.e. AY 1998-99. - Decided against revenue.
|