9911796707
TMI Blog2024 (3) TMI 633X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee is engaged in the business of development of software and running a call centre. During the survey conducted on 11/12/2002 under section 133A of the Income Tax Act, 1961 (for short "the Act"), it was found that the assessee made payments to IGTL Solutions (USA) and True Dial Technologies INC, without deducting the tax at source under section 195 read with section 9(1)(vi) and (vii) of the Act. According to the learned Assessing Officer the assessee having not made any deduction of tax at source without making any application under section 192(2) of the Act before the learned Assessing Officer (TDS) and without ensuring that an application under section 195(3) of the Act was filed by the recipient to obtain necessary exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... necessary to refer to the relevant observations of the Hon'ble Apex Court hereunder,- "7. Today, when the matter is taken up for hearing, the entire paper book that was filed before the Tribunal was made available by the learned counsel for appellant and one such document therein is the certificate so issued under section 195(3) of the Act, granting exemption to M/s IGTL solutions (USA) so far as receiving of remittances without deduction of income tax at source. If the contents of the said document is to be accepted and on verification, found to be genuine, the consequences would be that the entire remittances that have been made to M/s IGTL solutions (USA) would be non-taxable so far as TDS is concerned. Further, if the contents of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 195(3) of the Act and if it is found to be genuine, then to grant the relief as directed by the Hon'ble High Court. 8. On a careful consideration of the matter, we are of the considered opinion that it is only if the contents of the certificate issued in section 195(3) of the Act are verified and found to be correct and genuine, then the consequences would be that the remittances that have been made to M/s. IGTL Solutions (USA) would be non-taxable so far as the TDS is concerned, since if the contents of such certificate are accepted, then the action on the part of the Revenue in carrying out a deduction at source on the remittances made to M/s. IGTL Solutions (USA) would be bad. 9. In these circumstances, learned Assessing Officer is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
