https://www.taxtmi.com/caselaws?id=753180 The ITAT Mumbai dismissed the appeal regarding TDS u/s 194LBC applicability on payments made by a securitization trust to an Originator as Excess Interest Spread. The tribunal held that Section 194LBC requires two conditions: the payee must be an investor in the securitization trust, and payment must be towards income from such investment. Neither condition was satisfied as the Originator was merely an assignor of loan portfolio, not a holder of securitized debt instruments or securities, thus not qualifying as an investor. The assignment deed could not be considered a securitized debt instrument, distinguishing the Originator from actual PTC holders who are investors. en-us Wed, 08 May 2024 00:00:00 +0530 Mon, 27 May 2024 09:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753180 The ITAT Mumbai dismissed the appeal regarding TDS u/s 194LBC applicability on payments made by a securitization trust to an Originator as Excess Interest Spread. The tribunal held that Section 194LBC requires two conditions: the payee must be an investor in the securitization trust, and payment must be towards income from such investment. Neither condition was satisfied as the Originator was merely an assignor of loan portfolio, not a holder of securitized debt instruments or securities, thus not qualifying as an investor. The assignment deed could not be considered a securitized debt instrument, distinguishing the Originator from actual PTC holders who are investors. Case-Laws Income Tax Wed, 08 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753180