Deduction of Tax at Source ::

Court :
Tribunal

Brief :
Held that when 194-I was introduced for TDS on rent payments, it was not envisaged that it will cover payments to hotels also. Further, assessee had itself sought clarification regarding TDS on hotel rent from the Deptt. which proves bona fide of the assessee. Hence assessee was not in default for not deducting tax at source.

Citation :
Asstt. CIT Vs. British Airways

Deduction of Tax at Source Asstt. CIT Vs. British Airways 4/29/2005 IT Appeal Nos. 4008 to 4011 (Del.) of 2004 Case Fact: Whether assessee can be held to be in default for not deducting tax at source for payments for room rents to hotel, where assessee was under bona fide belief that he was not liable to deduct tax. Decision: Held that when 194-I was introduced for TDS on rent payments, it was not envisaged that it will cover payments to hotels also. Further, assessee had itself sought clarification regarding TDS on hotel rent from the Deptt. which proves bona fide of the assessee. Hence assessee was not in default for not deducting tax at source.

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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