CIT vs. TUAREG MARKETING PVT LTD

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ITA - 224 / 2011HC Delhi09 February 20111 pages
For Petitioner: RASHMI CHOPRA
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the Revenue's appeal. The Court noted that the ITAT had held that no tax at source was required to be deducted on the payment. This conclusion by the ITAT was based on its own prior order concerning the assessee for the assessment year 2006-07. The Revenue had appealed that earlier order to the High Court in ITA 844/2009, which was dismissed on September 16, 2009. Following this precedent, the present appeal was also dismissed. The operative direction was the dismissal of the Revenue's appeal, upholding the ITAT's decision.

What were the facts?

The Revenue (Income Tax Department) is in appeal against an order of the Income Tax Appellate Tribunal (ITAT). The ITAT had allowed a deduction for a payment made by the assessee, holding that no tax at source was required to be deducted on this payment. The ITAT's decision was based on its own prior order concerning the same assessee for the assessment year 2006-07. The Revenue had appealed that earlier order (ITA 844/2009) to the High Court, which dismissed the appeal on September 16, 2009. The present appeal, ITA 224/2011, follows the same issue and reasoning.

What were the issues?

1. Whether the payment made by the assessee was subject to deduction of tax at source under Section 40(a)(ia) of the Income-Tax Act, 1961, and consequently, whether the assessee was entitled to claim the payment as a deduction. Assessee's Contention: The assessee contended that no tax at source was required to be deducted on the payment in question. The ITAT had previously held in favour of the assessee on this point for the assessment year 2006-07. Revenue's Contention: The Revenue invoked the provisions of Section 40(a)(ia) of the Act, disallowing the deduction on the ground that the assessee failed to deduct tax at source. The Revenue had appealed the ITAT's earlier decision to the High Court.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . 09.02.2011 . Present: Ms. Rashmi Chopra, Advocate for the Revenue. . . Ms. Kavita Jha, Advocate with Mr. Somnath Shukla, advocate for the respondent/assessee. . + ITA 224/2011 . . Payment made by the assessee was not allowed for deduction invoking the provisions of Section 40 (a) (ia) of the Income-Tax Act (hereinafter referred to as the ?Act?), on the ground that the assessee had failed to deduct the tax at source. The Tribunal has held that no tax at source was required to be deducted on this payment. For coming to this conclusion, the Tribunal has followed its own order in the case of assessee itself pertaining to the assessment year 2006- 07. Against that order of the Tribunal, the Revenue had filed the appeal i.e. ITA 844/2009 under Section 260A of the Act which was dismissed by this Court on 16th September, 2009. Following that decision, this appeal is also dismissed. . . A.K. SIKRI, J. . INDERMEET KAUR, J. FEBRUARY 9, 2011 skb . 7-8#

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