The Tax Publishers2020 TaxPub(DT) 5401 (Bang-Trib)

INCOME TAX ACT, 1961

Section 201(1)/(1A)

Assessee was under bona fide belief that it was not required to deduct tax at source from payments made for purchase of software since there were certain decisions holding so. Accordingly, demand raised on assessee under section 201(1A) on account of assessee not having withheld tax under section 195 from payment made to non-resident towards purchase of software, could not be upheld.

Tax deduction at source - Assessee-in-default - Non-withholding of tax under section 195 in view of judicial precedents -

AO levied interest under section 201(1A) on account of assessee not having withheld tax under section 195 from payment made to non-resident towards purchase of software. Held: Assessee was under bona fide belief that it was not required to deduct tax at source from payments made for purchase of software since there were certain decisions holding so. Accordingly, demand raised on assessee under section 201(1)/(1A) could not be sustained.

Relied:Acer India (P) Ltd. v. Dy.CIT IT(IT) No. 107-114 of 2018 for assessment years 2009-10 to 2012-13 : 2020 TaxPub(DT) 4151 (Bang-Trib).

REFERRED : Teekays Interior Solutions P. Ltd. ITA No.400/Bang/2017 : 2019 TaxPub(DT) 2477 (Bang-Trib), Infineon Technologies India P. Ltd., IT(TP)A No.405/Bang/2015 : 2020 TaxPub(DT) 3459 (Bang-Trib) and GE Medical Systems India P. Ltd. ITA No. 1368/Bang/2019, WS Atkins India P. Ltd. (2015) 41 ITR 397 (Bang-Trib) : 2015 TaxPub(DT) 3019 (Bang-Trib).

FAVOUR : In assessee's favour.

A.Y. : 2010-11



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