| 2017-TII-INSTANT-ALL-418 | 27 January 2017 |
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CIRCULARS it17cir07 Clarifications on implementation on GAAR provisions under the Income Tax Act, 1961 it17cir03 Finance Act, 2016 - Explanatory Notes to the Provisions of the Finance Act, 2016 Administrative Orders Applications invited for post of Director in FATF Secretariat in MoF TII Brief GAAR not to be invoked if LoB in tax treaty sufficiently addresses tax abuse CASE LAW CIT Vs TAWANT TECHNOLOGIES INDIA PVT LTD: SUPREME COURT OF INDIA (Dated: January 23, 2017) Income tax - Section 10A Keywords - export turnover & total turnover The Revenue preferred the present SLP challenging the order, whereby the High Court had held that no writ interference is warranted, when the impugned questions are already covered by the decision of the writ court. On appeal, the Supreme Court condones the delay in filing of petition and therefore grants leave to the Revenue Department to defend their case. Leave granted DIT Vs HELIX ENERGY SOLUTIONS GROUP INC: BOMBAY HIGH COURT (Dated: January 23, 2017) Income tax - Section 234B Keywords - interest - TDS obligation of payer - liability of payee The Revenue preferred the present appeal challenging the order, whereby the Tribunal had held that interest u/s 234B was not leviable in the case of non-resident in view of the failure of the payer to deduct tax at source. On appeal, the HC held that, Whether a payee can be made liable for payment of interest u/s 234B, for the default of the payer to deduct tax at source and deposit the same with the government - NO: HC + the impugned order of the Tribunal held that there was an error apparent on record in the order passed u/s 254(1). This was in view of the fact that it ignored taking into account the decision of this Court in Director of Income Tax (International Taxation) Vs. NGC Network Asia LLC. In the aforesaid decision, the Court held that where duty is cast on the payer to deduct and pay the tax at source but has not been done, then no interest u/s 234B can be imposed on the payee assessee. Thus, on the basis of the decision of this Court in NGC Network Asia, the order to the above extent was recalled and the Miscellaneous Application allowed. It was also fairly stated that the issue raised herein stands concluded against the Revenue by the decision of this Court in NGC Network Asia. Therefore, the question as proposed does not give rise to any substantial question of law. Revenue's appeal dismissed |
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