{"id":2966,"date":"2011-04-06T18:31:18","date_gmt":"2011-04-06T13:01:18","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=2966"},"modified":"2011-04-06T18:31:18","modified_gmt":"2011-04-06T13:01:18","slug":"cit-vs-swaraj-mazda-ltd-ph-high-court-if-s-1952-certificate-not-withdrawn-assessee-not-in-s-201-tds-default","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/cit-vs-swaraj-mazda-ltd-ph-high-court-if-s-1952-certificate-not-withdrawn-assessee-not-in-s-201-tds-default\/","title":{"rendered":"CIT vs. Swaraj Mazda Ltd (P&#038;H High Court)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=396\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=396&varname2=swaraj_mazda_195_201_TDS.pdf'; }, 100)\" ><strong>Click here to download the judgement (swaraj_mazda_195_201_TDS.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nIf s. 195(2) certificate not withdrawn, assessee not in s. 201 TDS default<br \/>\n<\/strong><\/p>\n<p>The assessee made payment of \u201cdaily allowance\u201d to a Japanese company on account of the stay of Japanese engineers without deduction of tax at source. <em>The AO held that the payment was assessable to tax as \u201cfees for technical services\u201d and that the assessee was liable u\/s 201 for failure to deduct tax at source<\/em>. Apart from the merits that the payment was not taxable as FTS, the assessee argued that it was <em>not liable to deduct tax at source as the AO had issued a \u2018<em>No Objection Certificate<\/em>\u201d u\/s 195(2)<\/em>. The Tribunal accepted the assessee\u2019s plea. On appeal by the department to the High Court, HELD dismissing the appeal:<\/p>\n<blockquote><p>The AO had issued a certificate u\/s 195(2) authorizing the remittance without deduction of tax at source. As this <strong><em>certificate was not cancelled u\/s 195(4), the assessee was not required to deduct tax at source and could not be treated as assessee in default<\/em><\/strong>. The issue whether the payments were taxable or not need not be gone into<\/p><\/blockquote>\n<div class=\"journal2\">\nNote: <strong>Jaipur Udyog vs. CIT<\/strong> 155 ITR 476(Raj) which takes the same view referred to\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The AO had issued a certificate u\/s 195(2) authorizing the remittance without deduction of tax at source. As this <strong><em>certificate was not cancelled u\/s 195(4), the assessee was not required to deduct tax at source and could not be treated as assessee in default<\/em><\/strong>. The issue whether the payments were taxable or not need not be gone into<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/cit-vs-swaraj-mazda-ltd-ph-high-court-if-s-1952-certificate-not-withdrawn-assessee-not-in-s-201-tds-default\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,5],"tags":[],"class_list":["post-2966","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-high-court"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/2966","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=2966"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/2966\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=2966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=2966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=2966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}