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II. Direct Tax Case laws:
1. CIT vs. DHTC Logistics Ltd, ITA 314/2013, Date of Order : 26.07.2013 (Delhi High Court)
S.
272B - Penalty is Rs. 10000 per deductor and not per wrong PAN penalty,
the same is not applicable on deductor if information is not furnished
by deductee.
In case,
the PAN Numbers are not furnished by the deductees, the assessee cannot
be penalized u/s 272B. S. 139A also imposes the obligation on the
deductees to furnish PAN Number to the deductor. Secondly, the stand
taken by the revenue is contrary to the stand taken by the CBDT. The AO
had imposed penalty of Rs.10,000/- in each case where PAN Number was not
provided by the deductee. However, the CBDT has in letter dated
5.8.2008 vide No.275/24/2007-IT(B) clarified that penalty of Rs.10,000
u/s 272B is linked to the person, i.e., the deductor who is responsible
to deduct TDS, and not to the number of defaults regarding the PAN
quoted in the TDS return. Therefore, regardless of the number of
defaults in each return, maximum penalty of Rs.10,000/- can be imposed
on the deductor.
(Please click here to view the Judgment)
2.
Bank of Bahrain & Kuwait VERSUS Deputy Director of Income Tax
(International Taxation),I.T.A. No.7781/Mum/2010, DATE OF ORDER:
30.09.2013, ITAT-Mumbai.
NRI desk expenses and direct staff cost incurred by head office
outside India and same were reimbursed by Indian branch, direct and
exclusive NRI Desk expenses incurred by Head Office were allowed in full
as same were not hit by section 44C
An
identical issue has been considered and decided by this Tribunal in
assessee's own case for the assessment year 2002-03, Addl. DIT v. Bank
of Bahrain & Kuwait. Respectfully following the order of this
Tribunal, the direct and exclusive NRI Desk expenses incurred by head
office were allowed in full as same were not hit by section 44C.
However, the allocated expenses towards staff cost incurred by OBD and
various other Head Office support centres to NRI Desk are to be
considered as per provisions of section 44C only subject to verification
and correctness of expenses as per the directions of the Tribunal for
the assessment year 2002-03. Similarly, the other common Head Office
expenses are also to be considered as per the provisions of section 44C
only. Therefore, the Assessing Officer has to work out the amount of
deduction under section 44C afresh as per law in respect of the common
expenses covered under section 44C. Accordingly, the orders of
authorities below are modified.
(Please click here to view the Judgment)
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