TaxTMI 
TaxTMI 
1987 (10) TMI 7
X X X X Extracts X X X X
X X X X Extracts X X X X
....these writ petitions are filed by Coromandel Fertilizers Ltd., Secunderabad, questioning the order of the Income-tax Officer, F-Ward, Company Circle, Hyderabad, dated December 23, 1982. It is necessary to state a few facts to appreciate the question arising herein. The petitioner entered into two agreements with a West German company, Krupp Polysius A.G., on May 18, 1981. One agreement related to....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r "no objection certificate" to enable it to transmit the said amount to the West German company without the obligation of deducting the tax at source. Discussions were held between the parties and ultimately on December 23, 1982, the Income-tax Officer passed the impugned order. Under this order, the Income-tax Officer opined that the payment in question falls within the definition of "Royalty" a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....man company, for the relevant assessment years. We may mention that in the first writ petition, only one assessment year is involved, while in the other writ petition, a number of assessment years are involved. The submission is that for all the relevant assessment years, the petitioner has filed returns as the agent of the said West German company, inter alia, contending that the said amount is n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t, not being 'Interest on securities', or any other sum, not being dividends, chargeable under the provisions of this Act, shall, at the time of payment, unless he is himself liable to pay any income-tax thereon as an agent, deduct income-tax thereon at the rates in force." (emphasis added) A reading of sub-section (1) of section 195 clearly discloses that the obligation created thereunder does n....