Samsung Electronics (Kar HC): Special Bench to hear arguments

Update: 10.04.2010: The judgement is available here

In M/s Prasad Productions Ltd, a Special Bench, Chennai, has been constituted to hear the following question:

“Whether for the purposes of sections 201(1) and 201(1A), when an assessee responsible for making payment to a Non-resident, has not applied to the Assessing Officer u/s 195(2) for deduction of tax at a lower or Nil rate of tax, he is under statutory obligation to deduct tax at source computed on the entire payment to the Non-resident treating the same as income chargeable to tax, in the light of decision of the Apex Court in the case of Transmission Corporation of A.P. Ltd. v. CIT (239 ITR 587)?”

The matter was heard by the Bench compromising Hon’ble Shri P P Parikh, Shri N Barathvaja Sankar and Shri Hari Om Maratha on November 3, 2009.

In view of the judgement of the Karnataka High Court in Samsung Electronics, the matter has been refixed for hearing on 23rd February 2010.

Anybody desirous of addressing the Hon’ble Bench on the issue may contact the Asst. Registrar, ITAT, Chennai.

Note: In G. E. India Technology vs. CIT the Supreme Court has granted Ad-interim stay of recovery from demand arising pursuant to the said judgement in Samsung Electronics. See Also: Mahindra & Mahindra 122 TTJ (Mum) (SB).

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