COMMISSIONER OF INCOME TAX vs. LEAR AUTOMOTIVE INDIA LTD
What did the High Court hold?
The Tribunal affirmed the CIT(A)'s decision, holding that the tooling advance was not the assessee's income and therefore, the TDS deducted on it was mistakenly deducted. The assessee was entitled to credit for the entire TDS amount.
What were the facts?
Mahindra and Mahindra Limited mistakenly deducted TDS on a total payment of Rs 9,30,00,000/- to the assessee, which included engineering fees and a tooling advance. The assessee claimed credit for the entire TDS amount, arguing that the tooling advance was a reimbursement and not their income.
What were the issues?
Whether the assessee is entitled to credit for TDS mistakenly deducted on an amount that was not its income, but a reimbursement.
Which sections of the Income-tax Act were involved?
None mentioned
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(1)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- Sandvik Asia Ltd. v. CIT96 citing280 ITR 643 · 2006 · SC · Read judgment
IN THE HIGH COURT OF DELHI AT NEW DELHI . ITA 110/2010 . COMMISSIONER OF INCOME TAX ..... Appellant Through : Mr Sanjeev Sabharwal . versus . LEAR AUTOMOTIVE INDIA LTD ..... Respondent Through : None . . . CORAM: HON'BLE MR JUSTICE BADAR DURREZ AHMED HON'BLE MR JUSTICE SIDDHARTH MRIDUL . O R D E R 05.02.2010 This appeal relates to the assessment year 2001-2002 and arises out of the Tribunal?s order dated 19.06.2009. The issue was with regard to the allowance of credit for TDS mistakenly deducted by Mahindra and Mahindra Limited while making the payment to the assessee amounting to Rs 25,57,500/-. The Tribunal has examined the matter in detail and has affirmed the views taken by the Commissioner of Income Tax (Appeals). The Tribunal held as under:- 5. Having heard the ld. DR and having perused the material on record, we find that there is no error in the order of the ld. CIT(A). Undisputedly, the assessee company earned income of Rs?4,65,00,000/- only by way of Engineering fees. Another amount of Rs 4,65,00,000/- had been received as tooling advance. This latter amount was to be paid to the vendors of M/s. Mahindra and Mahindra . . Ltd. This payment was a reimbursement. That being so, it could not be considered as the income of the assessee company. It was by sheer mistake that M/s. Mahindra and Mahindra Ltd. has deducted TDS on the whole amount of Rs 9,30,00,000/-. The TDS amount was thus in excess of the assessable tax on the payment made by M/s. Mahindra and Mahindra Ltd. to the assessee company. This had to be refunded, as held by the Hon?ble Supreme Court in the case of ?Sandvik India LTd. v. CIT? 280 ITR 643(SC). This position has duly been considered and rightly so, by the ld. CIT(A) in the impugned order. If wrong tax has been paid, it is of necessity to be returned, lest the department be charged of unjust enrichment. 6. In view of the above, the ld. CIT(A) was right in directing the AO to give credit of the whole of the amount of Rs 51,15,000/- of TDS against the tax assessable in the year. The department is not justified in contending that the income of Rs 4,65,00,000/- corresponding to the TDS with regard to which the AO has been directed to allow credit, was not offered to tax. As noted, this amount had been received by the assessee company as tooling advance and it was paid to the vendors of M/s. Mahindra and Mahindra as a reimbursement. This being so, the amount of Rs?4,65,00,000/- received by the assessee company as tooling advance and paid as reimbursement to the vendors of M/s. Mahindra and Mahindra cannot at all be termed as the assessee?s income.? . We do not find any cause to interfere with the said findings of the Tribunal. No substantial question of law arises for our consideration. The appeal is dismissed. . BADAR DURREZ AHMED, J . . . . SIDDHARTH MRIDUL, J FEBRUARY 05, 2010 SR . 6
Recent GST High Court judgments
Search GST case law →- M/S. Mehra Mac Industries Private Limited vs. The Deputy State Tax OfficerTelangana · 30 Oct 2026
- Santosh Das And Anr. vs. Union Of INDIACalcutta · 30 Oct 2026
- M/S Rama Krishna Industries vs. State Of Hp And OthersHimachal Pradesh · 30 Oct 2026
- Smt Usha W/O Shri Tarun vs. Union Of INDIARajasthan · 29 Oct 2026
- M/S Maruti Nandan Minetech Private Limited vs. The Joint CommissionerRajasthan · 29 Oct 2026