https://www.taxtmi.com/caselaws?id=338698 The Court analyzed the applicability of Section 194(C) on payments to a sister concern for raw materials. Emphasizing the purpose of tax provisions, the Court differentiated between penalizing withholding lapses and restricting deductions for untaxed income under Section 40(a)(ia). It held that the second proviso to Section 40(a)(ia) is declaratory and curative, with retrospective effect. Considering the payee's reporting and potential double taxation, the Court directed a re-examination by the Assessing Officer to determine if the payment was a reimbursement without an income component, partially allowing the appeal. en-us Tue, 24 Jan 2017 00:00:00 +0530 Thu, 09 Feb 2017 13:04:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338698 The Court analyzed the applicability of Section 194(C) on payments to a sister concern for raw materials. Emphasizing the purpose of tax provisions, the Court differentiated between penalizing withholding lapses and restricting deductions for untaxed income under Section 40(a)(ia). It held that the second proviso to Section 40(a)(ia) is declaratory and curative, with retrospective effect. Considering the payee's reporting and potential double taxation, the Court directed a re-examination by the Assessing Officer to determine if the payment was a reimbursement without an income component, partially allowing the appeal. Case-Laws Income Tax Tue, 24 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338698