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II. Useful Case Laws:
1. Karanvir Singh Gossal Vs. CIT, Civil Appeal No. 1937 OF 2007, Dated : 06-09-2012, Supreme Court of India
Assessee is entitled to waiver of interest u/s 234A, B & C in view of CBDT Notification No 400/234/95-IT(B) dated 23-05-1996, vesting such powers in CCITs and DGITs.
We set aside the impugned orders of the Tribunal as also of the High Court. We direct the Tribunal to consider whether the assessee would be entitled to waiver of interest under the Circular bearing No.400/234/95-IT(B) dated 23rd May, 1996, which has been referred to by this Court in the case of Anjum Ghaswala [supra]. To this limited extent, the civil appeal stands allowed and the matter is remitted to the Tribunal to decide the question of applicability of the said circular to the facts of this case.
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2. ACIT Vs. M/s Priyadarshini Spinning Mills Ltd., ITA No. 1340/HYD/2010, Date of Pronouncement: 14-09-2012, ITAT- Hyderabad
No deduction of TDS u/s 195(1) shall be made if payment made to non-resident foreign agents for services rendered out of India & consequently no disallowance u/s 40(a)(i).
In the present case, the AO has failed to bring any material on record on the basis of which it could be concluded that commission paid to foreign agents is chargeable to tax in India. Unless the income is chargeable to tax in India, then tax is not required to be deducted u/s 195(1). From the facts and materials available on record, no definite conclusion can be made that the commission paid to foreign agents is chargeable to tax in India. Therefore, the disallowance made u/s 40(a)(i) is not sustainable. Hence, there is no reason to interfere with the finding of the CIT (A) on this issue. The grounds raised by the revenue are rejected.”
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