https://www.taxtmi.com/caselaws?id=269331 The Indian company, facing a civil penalty of US $10 million imposed by the US Court due to a complaint by the US Securities and Exchange Commission, sought clarification on tax liability under the Income-tax Act, 1961. The Authority for Advance Rulings concluded that the penalty amount did not attract tax liability, and thus no tax deduction under Section 195 was necessary. As a result, the Applicant was not required to deduct income tax at source for the penalty amount, leading to a decision in favor of the Applicant with no tax deduction required. en-us Tue, 01 Dec 2015 00:00:00 +0530 Tue, 03 May 2016 11:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=269331 The Indian company, facing a civil penalty of US $10 million imposed by the US Court due to a complaint by the US Securities and Exchange Commission, sought clarification on tax liability under the Income-tax Act, 1961. The Authority for Advance Rulings concluded that the penalty amount did not attract tax liability, and thus no tax deduction under Section 195 was necessary. As a result, the Applicant was not required to deduct income tax at source for the penalty amount, leading to a decision in favor of the Applicant with no tax deduction required. Case-Laws Income Tax Tue, 01 Dec 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=269331