The AO held that the assessee in default under section 201 of the Income-tax Act, 1961 in respect of payments to its parent company in the U. S. A. The Tribunal set aside the order. The High Court affirmed the decision of the Tribunal. On SLP the court held that the subject-matter of appeal before the High Court and to avoid any further question which may arise on limitation, the judgment of the High Court quashing and setting aside the order under section 201 of the Income-tax Act, 1961 was to be sustained but with the direction that the matter be remitted to the Assessing Officer (TDS) at the stage of issuance of the show-cause notice under section 201 so that after the decision of the High Court in the pending appeals, the matter could be proceeded with further in accordance with law and on the merits. (AY. 2014-15)
ITO(IT) v. Gia Laboratory Pvt. Ltd. (2023) 450 ITR 11 (SC) Editorial: Refer Gia Laboratory Pvt. Ltd. v. ITO(IT) (2023) 450 ITR 7 (Bom)(HC), affirmed.
S. 201 : Deduction at source-Failure to deduct or pay-Payments to non-resident-Tribunal setting aside order holding assessee in default-High court affirming Tribunal-Question of taxability in case of recipient pending before high court-Order of High court affirmed with direction to assessing officer to proceed in matter after decision of high court in pending appeals. [S. 260A, Art. 32]