Condonation of Delay: directoral disputes and pending company proceedings can constitute reasonable cause, allowing a belated return to be treated as ...
Revisionary jurisdiction under section 263 upheld; faceless assessments subject to revision when AO fails requisite enquiries, remitted for fresh asse...
Limited scope of processing under section 143(1): enhancement without show cause is unsustainable; remand for residency, taxation and TDS verification...
Explanations 4 to 6 to section 9(1)(vi) were held to expand the definition of royalty and to operate prospectively from 01.04.2012, following the Supreme Court ruling in Engineering Analysis and the assessee's earlier case. On that basis, remittance for IPLC and related bandwidth services to a non-resident was not taxable as royalty for the years in question, so no obligation to deduct tax at source under section 195 arose. Consequently, disallowance under section 40(a)(i) and consequential action under section 201, including interest liability, could not be sustained. The Court also noted that the law does not require an impossible act, and the questions of law were answered for the assessee.
Explanations 4 to 6 to section 9(1)(vi) were held to expand the definition of royalty and to operate prospectively from 01.04.2012, following the Supreme Court ruling in Engineering Analysis and the assessee's earlier case. On that basis, remittance for IPLC and related bandwidth services to a non-resident was not taxable as royalty for the years in question, so no obligation to deduct tax at source under section 195 arose. Consequently, disallowance under section 40(a)(i) and consequential action under section 201, including interest liability, could not be sustained. The Court also noted that the law does not require an impossible act, and the questions of law were answered for the assessee.
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