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2021 (12) TMI 59 - BOMBAY HIGH COURTReopening of assessment u/s 147 - TDS u/s 195 - whether petitioner should have deducted tax at source on 65% being remitted to Reuters UK? - HELD THAT:- Conclusion of the AO for reopening assessment is based on the agreements between petitioner as well as Reuters UK. We have to note that all these agreements were made available to the AO by petitioner when it applied for no objection certificate as noted earlier. ACIT (TDS) had all these documents before him to consider, before issuance of no objection certificate. Even if we interpret clauses in the agreement between petitioner and Reuters UK and for the sake of argument concur with the opinion of Assessing Officer in the reasons recorded for reopening, still the certificate issued by ACIT (TDS) cannot be invalidated when the certificate otherwise satisfy the requirement of Section 197 - Even if we agree with the views expressed and the reasons for reopening, still, determination of ACIT (TDS) is error in law, would not cease to be determination on which assessee could legitimately act and it is not open to the Revenue to hold the assessee liable for short deduction of tax made on the basis of such certificate and that by itself would not enable the Revenue to impose liability on the assessee, who had acted upon the certificate. Moreover to the further affidavit of petitioner filed through one Ojas Chowkshi REUTERS LIMITED VERSUS DY. COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) -RANGE 2 (1) , MUMBAI [2015 (9) TMI 844 - ITAT MUMBAI] has concluded for Assessment Year 1997-1998 that petitioner cannot be regarded as being in default when it has made payment to Reuters UK based on the "Nil" certificate issued by Revenue under section 195 of the Act. It has also held that Reuters UK does not have permanent establishment in India and therefore the distribution fees received by Reuters UK cannot be held to be taxable in India - Even on merits, reasons recorded for reopening cannot be accepted.
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