Loading judgment…
Facts
The Assessee, Royal Western India Turf Club Limited, did not deduct TDS on 'Stake Money' paid to horse owners for winning races. The Assessing Officer treated the Assessee as an 'assessee in default' and raised demands for tax and interest, which were upheld by the CIT(A).
Held
The Tribunal held that 'stake money' paid to horse owners is not liable for TDS under Section 194B or 194BB. Following previous decisions and the ruling in Hindustan Coca Cola, the Assessee cannot be treated as an 'assessee in default' if the recipients have already paid taxes on the income.
Key Issues
Applicability of TDS on 'stake money' paid to horse owners and whether the Assessee is an 'assessee in default' for non-deduction, considering previous judicial precedents and the fact that recipients may have paid taxes.
Sections Cited
201(1), 201(1A), 194B, 194BB, 191
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, D BENCH, MUMBAI
Per Rahul Chaudhary, Judicial Member:
The Assessee has preferred appeal against the order, dated 22/09/2025, passed by the Additional/Joint Commissioner of Income Tax (Appeals) – 2, Noida [hereinafter referred to as the `CIT(A)'], under Section 250 of the Income Tax Act, 1961 [hereinafter referred to as `the Act'], whereby the Ld. CIT(A) had dismissed the appeal against the Assessment Order, dated 17/03/2025, passed under Section 201(1)/201(1A) of the Act, for the Assessment Year 2018-2019. 2. The Assessee has raised following grounds of appeal:
That the order dated 17.03.2023 passed under Section 201(1)/201(1A) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') by the Income Tax Officer (TDS), TDS Ward 2(1)(3), Mumbai (hereinafter referred to as 'the Assessing Officer') for the Assessment Year ('A.Y.