The Petitioner is wholly owned subsidiary of Endurance International Group (India) Pvt. Ltd. which in turn is a subsidiary of Endurance Singapore Holdings 2 Pvt Ltd. Petitioner carries on business as a collection agent in respect of monies receivable from Indian customers by its Associated Enterprise. PDR Solutions FZC, UAE registered entity. The Assessing Officer passed an under Section 201(1) and 201(1A) read with Section 195 of the Act holding petitioner liable to pay a sum under Section 201(1) of the Act and some sum under Section 201(1A) of the Act and raised a total demand of Rs.8,45,12,593/-. The notice of demand under section 156 was also made on account of default in not deducting the tax as shown under Section 195 of the Act on the sums credited. On writ the court quashed the order and any consequential demand notice issued therein and asked the Assessing Officer to pass fresh orders after hearing the petitioner. If the Assessing Officer feels need to add any further points in the show cause notice the Assessing Officer shall issue fresh show cause notice to petitioner and petitioner may respond to the said show cause notice. [WP. No 1439 of 2021 dt. 25-10-20021 (AY. 2016-2017)]
Directi Services Pvt. Ltd. v. ACIT (Bom.)(HC)(UR)
S. 195 : Deduction at source-Non-resident-Collection agent in respect of monies receivable from Indian customers by its Associated enterprise a UAE registered entity-Failure to deduct tax at source-Oder was quashed without making any observations on the merits of the case-Assessing Officer was directed to pass fresh order after giving a reasonable opportunity to the assessee-DTAA-India-UAE. [S. 133(6), 201(1), 201(1A), Art. 5(4), Art. 226]