Deduction of Tax at Source ::

Last updated: 13 September 2007

Court :
HC

Brief :
Held by the Hon`ble Court that, as assessee merely acted as an agent and amounts repaid by the directors/managing directors including interest were not reflected in its accounts as loans or borrowing of the assessee. Therefore assessee was not a person responsible for paying interest to lender and A.O. was not justified in law for invoking sec. 194A, 201(1) and (A1) and 271 C.

Citation :
C.I.T. and others Vs. Century Building Industries P. Ltd.

Deduction of Tax at Source C.I.T. and others Vs. Century Building Industries P. Ltd. 03/11/2007 [2007] 293 ITR 80 (karn) Case Fact: Whether, where assessee receiving loan amount from lenders for its directors and forwarding it to directors similarly receiving repayment form directors and paying it to lender in the capacity of an agent of directors, A.O. was justified in law invoking 194A, 201(1)and (1A) and 271C? Decision: Held by the Hon`ble Court that, as assessee merely acted as an agent and amounts repaid by the directors/managing directors including interest were not reflected in its accounts as loans or borrowing of the assessee. Therefore assessee was not a person responsible for paying interest to lender and A.O. was not justified in law for invoking sec. 194A, 201(1) and (A1) and 271 C.