Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
HC held that the appellant-employer could not be treated as an "assessee in default" under s.201(1) for non-deduction of TDS under s.192 on Leave Travel Concession reimbursements for AY 2016-17. In view of subsisting interim directions of the Madras HC during the relevant financial year, the appellant had no operative obligation to deduct tax "at the time of payment," a precondition for invoking s.201. Consequently, interest under s.201(1A) was also held inapplicable. HC further noted that the first proviso to s.201(1) protects a payer where the payee has duly accounted for such amounts in the return of income. Earlier adverse findings of the SC for a different assessment year were distinguished. The appeal was allowed in favour of the assessee.
HC held that the appellant-employer could not be treated as an "assessee in default" under s.201(1) for non-deduction of TDS under s.192 on Leave Travel Concession reimbursements for AY 2016-17. In view of subsisting interim directions of the Madras HC during the relevant financial year, the appellant had no operative obligation to deduct tax "at the time of payment," a precondition for invoking s.201. Consequently, interest under s.201(1A) was also held inapplicable. HC further noted that the first proviso to s.201(1) protects a payer where the payee has duly accounted for such amounts in the return of income. Earlier adverse findings of the SC for a different assessment year were distinguished. The appeal was allowed in favour of the assessee.
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