Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
ITAT allowed the assessee's appeals, holding that the AO's final invocation of section 194I for non-deduction of TDS on External Development Charges paid to HUDA was unsustainable; though the show-cause notices referenced both sections 194I and 194C, the orders ultimately proceeded under section 194I, which the Tribunal found inapplicable to EDC receipts. The Tribunal held the Department cannot secure an advantage by citing multiple provisions in a show-cause and then enforcing a provision not legally attracted. Consequentially, the Tribunal sustained the assessee's grounds challenging TDS liability and set aside the impugned assessments insofar as they relied on section 194I.
ITAT allowed the assessee's appeals, holding that the AO's final invocation of section 194I for non-deduction of TDS on External Development Charges paid to HUDA was unsustainable; though the show-cause notices referenced both sections 194I and 194C, the orders ultimately proceeded under section 194I, which the Tribunal found inapplicable to EDC receipts. The Tribunal held the Department cannot secure an advantage by citing multiple provisions in a show-cause and then enforcing a provision not legally attracted. Consequentially, the Tribunal sustained the assessee's grounds challenging TDS liability and set aside the impugned assessments insofar as they relied on section 194I.
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