2018 (8) TMI 2108

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... upholding the assessee in default u/s 201(IA) of the Income Tax Act, 1961. The appellant has purchased property from non-resident through his GPA who was resident of India. The payment was made to the attorney holder. The Appellant is not liable to deduct TDS when payment is made to a power of attorney holder. The issue is covered by the judgment of the Hon'ble ITAT in 128 TTJ 116 (2010) in the case of Rakesh Chauhan under section DDIT (International Taxation) In view of the above, it si prayed that the order under section 201(IA) of the Income Tax Act 1961 may kindly be quashed. " 3. The short issue to be dealt in this case is whether or not the assessee is liable to deduct TDS when payment is made to a power....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....be charged in the hands of the assessee. 7. The provisions of 201(1) stipulates that the assessee is liable to deduct tax on the payment and section 201(1)(A) casts liability of the assessee to pay interest on the default. Though the statutory provisions casts liability on the assessee, keeping in view the payment received by the exchequer, whether by the assessee(purchaser) or by the recipient(seller) leverage was given by the authorities not to burden the assessee with the strict liability of the TDS deduction when the recipient pays the due taxes vide Circular No. 275/201/95-IT dt. 29/01/1997. This doesn't mean the assessee is absolved totally of the responsibility to deduct the taxes and also interest if any. This Circular absolves t....