Assessee is\u00a0 a securitisation trust. Assessee had paid an amount under head of Excess Interest Spread (EIS) to originator for relevant year.\u00a0 The AO held that the assessee is obliged to deduct tax from the said amount under S. 194LBC of the Act\u00a0 and treated the assessee as defaulter under S. 2001(1), 201(IA) of the Act. On appeal the CIT (A) held that the assessee cannot be treated as an investor within the meaning\u00a0 of clause (a) Explanation 115TCA as the organisor is neither\u00a0 receipt. On appeal the Tribunal held that\u00a0 there is\u00a0 a clear distinction between originator, which was assignor of loan portfolio to assessee, and PTC holders, who were investors in securitisation trust and since originator was neither a holder of any securitized debt instrument, securities or security receipts, it could not be regarded as an investor. Therefore, assessee is\u00a0 not obliged to deduct TDS under section 194LBC\u00a0 of the Act. (AY. 2018-19)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 194LBC : Investment in securitization trust-Deduction of tax at source-Payment to originator, as per RBI guidelines-Originator was neither a holder of any securitized debt instrument, securities or security receipts-It could not be regarded as an investor-Payment made to originator was not covered within purview of section 194LBC-Not liable to deduct tax at source. [S.201(1),201(IA)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","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":""},"categories":[21],"tags":[],"class_list":["post-49899","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cYP","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=49899"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49899\/revisions"}],"predecessor-version":[{"id":49900,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49899\/revisions\/49900"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=49899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=49899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=49899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}