TaxTMI 
TaxTMI 
2026 (7) TMI 212
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....ppellant-Revenue has proposed the following substantial question of law arising out of the order dated 08.10.2025 passed by the Income Tax Appellate Tribunal [for short 'the Tribunal'] in ITAT/882/AHD/2025 for the Assessment Year 2017-18: "(a) Whether, on the facts and circumstances of the case and in law, the learned ITAT has erred in allowing the appeal of the assessee without appreciating the analysis of facts and rebuttal of AO against the plea of the assessee on each transactions attracts provisions u/s. 201/201(1A) of the Act?" 3. The respondent-Assessee filed return of income on 31.10.2017 declaring loss of Rs. (-)5,13,57,857/-. Assessment order dated 27.12.2019 was passed under section 143(3) of the Act assessing total l....
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....ovisions of the Act and on the basis of Double Taxation Avoidance Agreement ['DTAA" for short] executed with the countries of residence of the parties concerned and Forms 15CB was also obtained for each transaction involving payment to a nonresident taxation at source advised by the Chartered Accountant and the same was duly submitted. 3.6 It was also pointed out from clause 24(b) of Form 3CD of audit report issued by the tax auditor that there is no non-compliance on the part of the assessee with respect to deduction at source which was reported in the audit report. 3.7 It was, therefore, prayed that the assessee cannot be considered as the assessee in default as per provisions of section 201 of the Act. 3.8 The Tribunal, after co....
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....gnored the facts which were considered by the Assessing Officer to hold the assessee as an assessee-in-default as per provision of section 201(1) of the Act. 5. Having heard learned counsel for the appellant-Revenue, it would be germane to refer to the provision of section 201 of the Act which reads as under: "Consequences of failure to deduct or pay. 201. (1) Where any person, including the principal officer of a company,- (a) who is required to deduct any sum in accordance with the provisions of this Act; or (b) referred to in sub-section (1A) referred to in sub-section (1A) of section 192, being an employer, of section 192, being an employer, does not deduct, or does not pay, or after so deducting fails to p....
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....r under this Act, then such person shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in-default in respect of such tax. On perusal of the findings of facts arrived at by the Tribunal, it appears that the respondent-assessee had submitted Form 15CB related to each transaction involving payment to non-resident and tax at source which was duly deposited by the assessee. The Assessing Officer has considered various transactions of commission paid by the assessee to the banks and the credit card companies as well as travel agent and the commission which, according to the assessee, was not liable for TDS, as such payments were made for booking of the hotel rooms through websites as well as the subs....
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....hat clause, deduction of tax shall be made only at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode. Explanation 1.-For the purposes of this section, where any interest or other sum as aforesaid is credited to any account, whether called "Interest payable account" or "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly. Explanation 2.-For the removal of doubts, it is hereby clarified that the obligation to comply with subsection (1) and to make deduction thereunder applies and shall ....