Income-tax prosecution fails when appellate remand removes its factual foundation; directors require company arraignment for vicarious criminal liabil...
Capital character of assignment consideration prevents taxation as residuary income, while unsupported interest-related expenditure remains non-deduct...
Make-available condition shields regional support-service receipts from Indian taxation where no independent capability or permanent establishment exi...
Transfer-pricing treatment of corporate guarantees and convertible loans followed prior-year consistency, with taxable foreign dividends excluded from...
Transfer-pricing benchmarking confines adjustments to associated-enterprise transactions and integrates delayed receivables through TNMM working-capit...
Medical relief status protects government-contracted mobile healthcare from commercial classification, while provisional registration cancellation req...
Charitable registration cancellation requires proof that educational activities abandoned their objects; incidental receipts and retained surplus are ...
Tax withholding under Section 195 arises only where a payment to a non-resident is chargeable to tax in India. Where consistent Tribunal findings, upheld by the High Court for earlier years, establish that the recipient has no permanent establishment in India and its relevant income is not taxable, the Assessing Officer cannot take a contrary position on identical facts. Section 195(2) applies only when the payer accepts that part of a remittance is taxable but requires determination of the taxable portion or deductible tax. It does not require an application where the entire payment is not chargeable. Consequently, no tax deduction obligation or Section 201 default arises for such payments, and the Section 201 order was quashed.
Tax withholding under Section 195 arises only where a payment to a non-resident is chargeable to tax in India. Where consistent Tribunal findings, upheld by the High Court for earlier years, establish that the recipient has no permanent establishment in India and its relevant income is not taxable, the Assessing Officer cannot take a contrary position on identical facts. Section 195(2) applies only when the payer accepts that part of a remittance is taxable but requires determination of the taxable portion or deductible tax. It does not require an application where the entire payment is not chargeable. Consequently, no tax deduction obligation or Section 201 default arises for such payments, and the Section 201 order was quashed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4884 
