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| The Tax Publishers2020 TaxPub(DT) 3303 (SC) : (2020) 269 TAXMAN 0568 INCOME TAX ACT, 1961
Section 261 Section 40(a)(iii)
Where the Department preferred SLP to appeal against the judgment of Delhi High Court in ANZ Grindlays Bank v. Dy. CIT (2016) 382 ITR 156 (Delhi) : 2016 TaxPub(DT) 1213 (Del-HC), whereby the High Court held that the Parliament has expressly enacted that deduction in respect of payments made under sub-clause (i) of clause (a) of section 40 would not be available where such payments were made in India to a non-resident in respect of which tax had not been paid 'before the expiry of time prescribed under sub-section (i) of section 200'. However, no such condition for depositing the tax paid within a prescribed time was introduced in sub-clause (iii) of clause (a) of section 40. Accordingly this added condition that the tax must be deducted and paid within time, cannot be read in section 40(a)(iii), the Supreme Court dismissed the SLP as withdrawn leaving questions of law open.
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Appeal (Supreme Court) - Special leave petition - Business disallowance under section 40(a)(iii) - Salary paid to seconded employees--No tax deducted
Department preferred SLP to appeal against the judgment of Delhi High Court in ANZ Grindlays Bank v. Dy. CIT (2016) 382 ITR 156 (Del) : 2016 TaxPub(DT0 1213 (Del-HC), whereby the High Court held that the Parliament has expressly enacted that deduction in respect of payments made under sub-clause (i0 of clause (a) of section 490 would not be available where such payments were made in India to a non-resident in respect of which tax had not been paid 'before the expiry of time prescribed under sub-section (i) of section 200'. However, no such condition for depositing the tax paid within a prescrbed time was introduced in sub-clause (iii) of clause (a) of section 40. Accordingly this added condition that the tax must be deducted and paid within time, cannot be read in section 40(a)(iii). Held: Counsel for the petitioner, on instructions issued by the Department of Revenue, Ministry of Finance vide F.No. 390/Misc./116/2017, dated 22-8-2019, sought permission to withdraw this special leave petition along with pending applications therein due to low tax effect. Permission was granted, subject to just exceptions. The special leave petition and pending applications were dismissed as withdrawn, leaving question(s) of law open.
REFERRED :
FAVOUR : SLP dismissed as withdrawn.
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