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The petitioner has challenged the impugned order dated 24.11.2011 passed by the 1st respondent.In the impugned order, the 1st respondent has rejected the revision petition filed by the petitioner under Section 264 of the Income Tax Act, 1961, on 06.09.2011, on the ground that there was no undertaking furnished by the petitioner waiving right of appeal before the appropriate appellate forums.

Shanti Prime Publication Pvt. Ltd.

Sec. 264 of Income Tax Act, 1961— Revision - The petitioner had entered into an agreement with the abroad company namely M/s.MD IN Services Pvt. Limited in UK, for getting Insurance Product development. The petitioner was payable to the said abroad company of 2000 pounds per month for the service to be rendered abroad and utilised by the petitioner company abroad. The petitioner had sent a letter to the 2nd respondent for waiver of interest from deducting tax at source for the payments made to the said non-resident company under Section 195 of the Income Tax Act, 1961. The 2nd respondent ordered deducting of tax at the source of payment at 20% under the DTAA entered between the Government of India and the Government of UK. The payments made by the petitioner to the said UK company cannot be said to be towards fees payable in respect of services utilised in a business or profession carried out by the petitioner outside India as no such business had been established at the time of such payment. Petitioner was merely prospecting such business and therefore engaged the services of the said UK company as a consultant. As the petitioner has not established any business, the payment would not come within the purview of the exception provided in the Section 9(1)(vii)(b) of the Income Tax Act, 1961. - SHRIRAM CAPITAL LIMITED V/s DIT - [2020] 315 CTR 310 (MAD)