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.
CA.Saibaburao Nanduri
Published in Income Tax
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