https://www.taxtmi.com/caselaws?id=439863 Tax deduction at source was held to arise only where the remittance contains income exigible to tax in India. On the facts, the freight income of the foreign principal had already been treated as not taxable in India under Article 8 of the India-Germany DTAA, and the amounts remitted by the agent were merely collected on behalf of that principal rather than independent payments attracting withholding obligations. Revenue authorities were required to follow binding higher judicial rulings unless their operation was stayed, and the pendency of further proceedings before the Supreme Court did not justify ignoring those rulings. Proceedings under Section 201 and the consequential demand were therefore unsustainable. en-us Tue, 27 Jun 2023 00:00:00 +0530 Wed, 25 Oct 2023 11:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=439863 Tax deduction at source was held to arise only where the remittance contains income exigible to tax in India. On the facts, the freight income of the foreign principal had already been treated as not taxable in India under Article 8 of the India-Germany DTAA, and the amounts remitted by the agent were merely collected on behalf of that principal rather than independent payments attracting withholding obligations. Revenue authorities were required to follow binding higher judicial rulings unless their operation was stayed, and the pendency of further proceedings before the Supreme Court did not justify ignoring those rulings. Proceedings under Section 201 and the consequential demand were therefore unsustainable. Case-Laws Income Tax Tue, 27 Jun 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=439863