This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 201 : Deduction at source – Failure to deduct or pay –Interest is to be levied only from date on which tax was deducted and till date on which tax was deposited, only if such a period exceeds one month however interest would be levied even for delay of a day. [ S. 194A, 201(IA) ]

Bank of Baroda. v. DCIT (2018) 168 ITD 180 (Ahd) (Trib.)

S. 197 : Deduction at source – Certificate for lower rate – Flaw in decision making process- No Change in facts during period between grant of certificate and order cancelling certificate —Violation of principles of natural justice — Order was quashed . [ S. 263 R.28AA ]

Tata Teleservices (Maharashtra) Ltd. v. DCIT (2018) 402 ITR 384/253 Taxman 343 /163 DTR 317 /301 CTR 377 (Bom) (HC)

S. 194J : Deduction at source – Fees for professional or technical services –Rendering desktop , help desk, call centre etc was held to be technical services and not maintenance contract [ S.194C ]

Bombardier Transportation India (P.) Ltd. v. DCIT (2018) 168 ITD 599/193 TTJ 115 / 168 DTR 212 (Ahd) (Trib.)

S. 194H : Deduction at source – Commission or brokerage – Recharge vouchers supplied to distributors at discount was held to be commission ,considering the principal and agent relation hence liable to deduct tax at source .[ S. 201(1), 201(IA) ]

Vodafone Mobile Services Ltd. v. DCIT (2018) 168 ITD 219 (Hyd) (Trib.)

S. 194H : Deduction at source – Commission or brokerage –Principal and agent -Payment of commission made to advertisement agencies was held to be liable to deduct tax at source . Non compliance was held to be attracted the provision of S. 201 [ S. 201(IA ]

Director, Prasar Bharti v. CIT(2018)403 ITR 161/ 164 DTR 177/ 302 CTR 9/255 Taxman 1 (SC) , www.itatonline.org/Editorial: CIT v. Director, Prasar Bharti ( 2010) 325 ITR 205/ 230 CTR 277 /189 Taxman 315 ( Ker) (HC) is affirmed

S. 192: Salary – Deduction at source – Non-Resident — Employees rendering services on deputation at USA and Germany on assignment basis – Not liable to tax in India as services were rendered there hence not liable to deduct tax at source -DTAA- India – USA- Germany [ S. 2(45) 4, 5(2), 9(i)(ii), 90, 192 , 195,Art. 25 , 23 ]

Hewelett Packed India Software Operation P.Ltd In, re ( 2018) 401 ITR 339/162 DTR 337 301 CTR 12(AAR)

S. 170 : Succession to business otherwise than on death -Assessment— Amalgamation of companies — Assessment on company which is non-existent was held to be not valid- Assessment was not procedural irregularity which can be curable. [ S. 143(3), 292B ]

CIT v. Nokia Solutions And Network India Pvt. Ltd. (2018) 402 ITR 21// 253 Taxman 409 /164 DTR 198 (Delhi) (HC)

S. 164:Representative assessees – Charge of tax –Association of Persons — Trust formed for providing financial assistance to self-help groups —Assessee taxable as association of persons at maximum marginal rate on entire income not merely on surplus.-Principle of mutuality is not applicable- Liable to deduct tax at source- Matter remanded to AO [ S.4, 40(a)(ia) , 160, 167 ]

Sarvodaya Mutual Benefit Trust, Thellar. v . ITO (2018) 61 ITR 104 (Chennai) (Trib) Sarvodaya Mutual Benefit Trust, Pernamallur v . ITO (2018) 61 ITR 104 (Chennai) (Trib)

S. 158BD: Block assessment – Undisclosed income of any other person –Recording of reasons – Issue of Second (Fresh) Notice under S. 158BD of the Act is valid [ S. 132,148 , 158BC ]

Tapan Kumar Dutta v. CIT ( 2018)404 ITR 28/ 165 DTR 169/302 CTR 102 /255 Taxman 200 (SC) , www.itatonline.org

S. 158BC : Block assessment – Undisclosed income- Inflated sales — Report of special auditors — No Unqualified Acceptance Of Figures Of Special Auditors — Matter remanded to quantify inflated income . [ S.158BB ]

CIT v. Kedia Castle Dellion Industries Ltd. (2018) 401 ITR 334 (Cal) (HC)