CIT v. Eli Lily & Co.

312 ITR 225Supreme Court of India2009#403 most cited

What is CIT v. Eli Lily & Co. authority for?

Section 195 of the Income Tax Act, which mandates tax withholding on payments to non-residents, applies only to sums that are otherwise chargeable to tax under the Act. Tax withholding provisions are not charging provisions.

221

judgments rely on this decision, according to BharatTax’s citation analysis of 371,507 Indian tax judgments — from 2011 to 2026.

Also referred to as

CIT v. Eli Lily & Co. · section 195 · TDS · tax withholding · chargeable to tax · non-resident payments · not a charging provision · GE India Technology Centre Pvt. Ltd. v. CIT

Sections most often in play

Section 143(3)Section 153ASection 269SSSection 271DSection 275(1)(c)Section 273BSection 194CSection 132

Issues it is cited on

section 271csection 192section 156assessee in defaultsection 273bsection 271dsection 201(1)section 201(1a)section 195section 19section 201section 194

Judgments citing CIT v. Eli Lily & Co.

M/S Kei Industries Ltd., New Delhi vs. ITO (International Taxation), New Delhi

In the result, both the appeals of the assessee are allowed

ITA 6400/DEL/2015[2011-12]Status: DisposedITAT Delhi29 Oct 2018AY 2011-12
For Appellant: Ms Gargi Sethee, AdvocateFor Respondent: Ms Ashima Neb, Sr. DR
Section 195Section 200ASection 201Section 206Section 206ASection 90(2)

…t in India as per the provisions of the DTAA and Section 206AA of the Act cannot override section 90(2) of the Act. He placed reliance on the decisions reported in Azadi Bachao Andolan vs UOI (2003) 263 ITR 706 (SC), and CIT versus Ely Lily and company (2009) 312 ITR 225 (SC). Ld. DR placed reliance on the orders of the authorities below. 5. We have gone through the record in the light of the submissions on either side. It is the argument of the Ld. AR that the issues that is substantially involved in these appeal are - whether Section 206AA of the Act override the provisions of Section 90(2) of the Act and wheth…

Maithan Alloys Ltd., Kolkata vs. ITO, (It), WD-2(1), Kolkata

In the result, the appeal of assessee is allowed

ITA 517/KOL/2016[2011-2012]Status: DisposedITAT Kolkata10 Aug 2018AY 2011-2012

Bench: "ी ऐ. ट". वक", "यायीक सद"य एवं/And "ी एम .बालागणेश, लेखा सद"य) [Before Shri A. T. Varkey, Jm & Shri M. Balaganesh, Am]

Section 200ASection 206ASection 90(2)

…he assessee to deduct tax at source on payments to a non-resident cannot be looked upon as a charging provision. In-fact, in the context of section 195 of the Act also, the Hon'ble Supreme Court in the case of CIT v. Eli Lily & Co., MANU/SC/0487/2009 : (2009) 312 ITR 225 (SC) observed that the provisions of tax withholding i.e. section 195 of the Act would apply only to sums which are otherwise chargeable to tax under the Act. The Hon'ble Supreme Court in the case of GE India Technology Centre Pvt. Ltd. v. 5 Maithan Alloys Ltd., AY 2011-12 CIT,MANU/SC/0688/2010 : (2010) 327 ITR 456 (SC) held that the provisions…

M/S Peerless Hospitex Hospital and Reserch Centre Ltd., Kolkata vs. ITO, WD-11(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1107/KOL/2014[2009-2010]Status: DisposedITAT Kolkata11 Jul 2018AY 2009-2010

Bench: Hon’Ble Shri Aby. T. Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A No. 1107/Kol/2014 Assessment Years : 2009-10 M/S Peerless Hospitex Hospital & Research Centre Ltd. -Vs- Ito, Ward-11(1), Kolkata [Pan: Aabcp 7225 L ] (Appellant) (Respondent)

For Appellant: Shri S.K. Tulsiyan, Adv. (AR)For Respondent: Shri P. K. Srihari, CIT(DR)
Section 12ASection 143(3)Section 197(1)Section 40

…ant case, there is no tax due to the exchequer and accordingly there is no question of compensating the same by way of interest. We find that this aspect is also dealt by the Hon'ble Supreme Court in the case of CIT v. Eli Lilly & Co. (India) (P.) Ltd. [2009] 312 ITR 225/178 Taxman 505, wherein it was held as below:— "34. From the above analyses two conclusions flow. Firstly, it cannot be stated as a broad proposition that the TDS provisions which are in the nature of machinery provisions to enable collection and recovery of tax are independent of the charging provisions which determine the assessability in the…

Ciena India Pvt. Ltd., Gurgaon vs. ITO, New Delhi

In the result, both the appeals of the assessee are allowed

ITA 984/DEL/2011[2008-09]Status: DisposedITAT Delhi29 Jun 2018AY 2008-09

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: Ms. Reetika Garg (CA) &For Respondent: Sh. Surender Pal (Sr. DR)
Section 195Section 201Section 201(1)

…the charging Sections of that Act de hors the machinery Sections. The Act is to be read as an integrated Code. Section 195 appears in Chapter XVII which deals with collection and recovery. As held in the case of C.I.T. vs. Eli Lilly and Co. (India) (P.) Ltd. [312 ITR 225] the provisions for deduction of TAS which is in Chapter XVII dealing with collection of taxes and the charging provisions of the I.T. Act form one single integral, inseparable Code and, therefore, the provisions relating to TDS applies only to those sums which are "chargeable to tax" under the I.T. Act. It is true that the judgment in Eli Lilly…

Ciena India Pvt. Ltd., Gurgaon vs. ITO, New Delhi

In the result, both the appeals of the assessee are allowed

ITA 959/DEL/2011[2007-08 (F.Y. 2006-07)]Status: DisposedITAT Delhi29 Jun 2018

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: Ms. Reetika Garg (CA) &For Respondent: Sh. Surender Pal (Sr. DR)
Section 195Section 201Section 201(1)

…the charging Sections of that Act de hors the machinery Sections. The Act is to be read as an integrated Code. Section 195 appears in Chapter XVII which deals with collection and recovery. As held in the case of C.I.T. vs. Eli Lilly and Co. (India) (P.) Ltd. [312 ITR 225] the provisions for deduction of TAS which is in Chapter XVII dealing with collection of taxes and the charging provisions of the I.T. Act form one single integral, inseparable Code and, therefore, the provisions relating to TDS applies only to those sums which are "chargeable to tax" under the I.T. Act. It is true that the judgment in Eli Lilly…

M/S Jai Shankar Seeds Corporation, Delhi vs. JCIT, Delhi

In the result, the appeal of the assessee stands allowed

ITA 2483/DEL/2016[2011-12]Status: DisposedITAT Delhi24 May 2018AY 2011-12

Bench: Shri S.K. Yadav & Shri Prashant Maharishi

Section 271CSection 273BSection 40

…ince he did not deduct the TDS under a bona fide belief the penalty u/s 271C of the Act should not be levied. He also placed a reliance upon the judgment of the Apex Court in the case of ACIT vs. Eli Lilly & Company (India) Pvt. Ltd. & Ors. Reported in (2009) 312 ITR 225 and the order of the Tribunal Chandigarh Bench in the case of Sukhdev Singh vs. JCIT (TDS) Chandigarh in ITA No. 116/Chd./2014 in which it has been 3 held that the provisions of Section 271C of the Act cannot be held to be mandatory or compensatory or automatic because u/s 273B Parliament has enacted that penalty shall not be imposed in cases whe…

DCIT, Chandigarh vs. M/S Winsome Textiles Industries Ltd., Chandigarh

In the result, all the appeals of the Revenue are dismissed

ITA 933/CHANDI/2017[2012-13]Status: DisposedITAT Chandigarh18 May 2018AY 2012-13

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri. Tej Mohan SinghFor Respondent: Shri. D.S. Kalyan
Section 195Section 40Section 9

…e charging sections of that Act de hors the machinery sections. The Act is to be read as an integrated code. Section 195 appears in Chapter XVII which deals with collection and recovery. As held in the case of CIT v. Eli Lilly and Co. (India) (P.) Ltd. [2009] 312 ITR 225 the provisions for deduction of TAS which are in Chapter XVII dealing with collection of taxes and the charging provisions of the Income-tax Act form one single integral, inseparable code and, therefore, the provisions relating to TDS apply only to those sums which are "chargeable to tax" under the Income-tax Act. It is true that the judgment in…

DCIT, Chandigarh vs. M/S Winsome Yarns Ltd., Chandigarh

In the result, all the appeals of the Revenue are dismissed

ITA 932/CHANDI/2017[2011-12]Status: DisposedITAT Chandigarh18 May 2018AY 2011-12

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri. Tej Mohan SinghFor Respondent: Shri. D.S. Kalyan
Section 195Section 40Section 9

…e charging sections of that Act de hors the machinery sections. The Act is to be read as an integrated code. Section 195 appears in Chapter XVII which deals with collection and recovery. As held in the case of CIT v. Eli Lilly and Co. (India) (P.) Ltd. [2009] 312 ITR 225 the provisions for deduction of TAS which are in Chapter XVII dealing with collection of taxes and the charging provisions of the Income-tax Act form one single integral, inseparable code and, therefore, the provisions relating to TDS apply only to those sums which are "chargeable to tax" under the Income-tax Act. It is true that the judgment in…

DCIT, Chandigarh vs. M/S Winsome Yarns Ltd., Chandigarh

In the result, all the appeals of the Revenue are dismissed

ITA 804/CHANDI/2017[2012-13]Status: DisposedITAT Chandigarh18 May 2018AY 2012-13

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri. Tej Mohan SinghFor Respondent: Shri. D.S. Kalyan
Section 195Section 40Section 9

…e charging sections of that Act de hors the machinery sections. The Act is to be read as an integrated code. Section 195 appears in Chapter XVII which deals with collection and recovery. As held in the case of CIT v. Eli Lilly and Co. (India) (P.) Ltd. [2009] 312 ITR 225 the provisions for deduction of TAS which are in Chapter XVII dealing with collection of taxes and the charging provisions of the Income-tax Act form one single integral, inseparable code and, therefore, the provisions relating to TDS apply only to those sums which are "chargeable to tax" under the Income-tax Act. It is true that the judgment in…

DCIT, C-4(1), Chandigarh vs. M/S Winsome Yarns Ltd, Chandigarh

In the result, all the appeals of the Revenue are dismissed

ITA 1321/CHANDI/2017[2013-14]Status: DisposedITAT Chandigarh18 May 2018AY 2013-14

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri. Tej Mohan SinghFor Respondent: Shri. D.S. Kalyan
Section 195Section 40Section 9

…e charging sections of that Act de hors the machinery sections. The Act is to be read as an integrated code. Section 195 appears in Chapter XVII which deals with collection and recovery. As held in the case of CIT v. Eli Lilly and Co. (India) (P.) Ltd. [2009] 312 ITR 225 the provisions for deduction of TAS which are in Chapter XVII dealing with collection of taxes and the charging provisions of the Income-tax Act form one single integral, inseparable code and, therefore, the provisions relating to TDS apply only to those sums which are "chargeable to tax" under the Income-tax Act. It is true that the judgment in…

The Dy. Commissioner of Income Tax(International Taxation)-1, Ahmedabad vs. Adani Wilmar Ltd., Ahmedabad

In the result, the appeal is dismissed

ITA 2642/AHD/2017[2016-17]Status: DisposedITAT Ahmedabad05 Apr 2018AY 2016-17
Section 2Section 206ASection 90Section 90(2)

…ITA No. 2642/Ahd/2017 DCIT vs. Adani Wilmer Ltd Assessment year: 2016-17 Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH, AHMEDABAD [Coram: Pramod Kumar AM and Rajpal Yadav JM] Assessment Year: 2016-17 Dy. Commissioner of Income-tax ............…………......Appellant (International Taxation)-1, Ahmedabad Vs. Adani Wilmer Limited ...........................Respondent 2nd Floor, Fortune House, Nr. Adani House, Mithakhali Cross Road, Navrangpura, Ahmedabad [PAN : AABCA 8056 G] Appearances by: Saurabh Singh for the Appellant PM Mehta for the Respondent Date of concluding the hearing : 15.03…

Dy. Commissioner of Income Tax (International Taxation)-1, Ahmedabad vs. Adani Port & Special Economic Zone Ltd., Ahmedabad

In the result, the appeal is dismissed

ITA 2641/AHD/2017[2016-17]Status: DisposedITAT Ahmedabad05 Apr 2018AY 2016-17
Section 206ASection 90Section 90(2)

…ITA No. 2641/Ahd/2017 DCIT vs. Adani Port & Special Economic Zone Ltd Assessment year: 2016-17 Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH, AHMEDABAD [Coram: Pramod Kumar AM and Rajpal Yadav JM] Assessment Year: 2016-17 Dy. Commissioner of Income-tax ............…………......Appellant (International Taxation), Ahmedabad Vs. Adani Port & Special Economic Zone Ltd ...........................Respondent Ground Floor, Adani House, Nr. Mithakhali Circle, Navrangpura, Ahmedabad [PAN : AAACG 7917 K] Appearances by: Saurabh Singh for the Appellant PM Mehta for the Respondent Date of concludi…

Mehta Jaising Builders, Mumbai vs. DCIT 19(1), Mumbai

In the result, the appeal is dismissed

ITA 125/MUM/2012[2007-08]Status: DisposedITAT Mumbai28 Mar 2018AY 2007-08

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2007-08 Mehta Jaising Builders Dcit- Circle -19(1) 398, Kirti Kunj, 14Th Road, Vs. Piramal Chambers, Khar (W) Lalbaug, Mumbai-400052. Mumbai-400012. Pan No. Aabtm7681C Appellant Respondent Assessee By : Mr. Sameer G. Dalal, Ar Revenue By : Mr. M.C. Omi Ningshen, Dr Date Of Hearing : 02/02/2018 Date Of Pronouncement : 28/03/2018

For Appellant: Mr. Sameer G. Dalal, ARFor Respondent: Mr. M.C. Omi Ningshen, DR
Section 143(3)Section 194Section 203

…rules as may be necessary, including the rule for the purposes of giving credit to a person other than those referred to in such-section (1) and sub- section (2) and also the assessment year for which such credit may be given.” In CIT. v Eli Lily & Co. (2009) 312 ITR 225 (SC), the Hon’ble Supreme Mehta Jaising Builders 6 Court has held that “Consequently, it cannot be said that the TDS provisions which are in the nature of machinery provisions to enable collection and recovery of tax are independent of the charging provisions which determine the assessibility in the hands of the employee.” Also it has been held…

Commissioner of Income Tax vs. M/S Unisons Hotels Ltd

ITA/395/2005HC Delhi01 Mar 2018

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA

Section 201Section 201(1)

…disposing of the said three appeals) held inter alia, as follows : “2. Learned counsel for the Appellant/Revenue has drawn the attention of this Court to the decision of the Supreme Court in Commissioner of Income Tax v. M/s Eli Lilly & Company (India) 312 ITR 225 (2009) (SC) in which it was held that interest under Section 201 (1A) of the Income Tax Act 1961 ('Act') is a compensatory measure for withholding the tax which ought to have gone to the exchequer. It has further been observed that the object underlying Section 201(1) of the Act is to recover the tax. In the case of short deduction, the obje…

Commissioner of Income Tax Del vs. M/S Unisons Hotels Ltd

ITA/666/2005HC Delhi01 Mar 2018

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA

Section 201Section 201(1)

…disposing of the said three appeals) held inter alia, as follows : “2. Learned counsel for the Appellant/Revenue has drawn the attention of this Court to the decision of the Supreme Court in Commissioner of Income Tax v. M/s Eli Lilly & Company (India) 312 ITR 225 (2009) (SC) in which it was held that interest under Section 201 (1A) of the Income Tax Act 1961 ('Act') is a compensatory measure for withholding the tax which ought to have gone to the exchequer. It has further been observed that the object underlying Section 201(1) of the Act is to recover the tax. In the case of short deduction, the obje…

Commissioner of Income Tax Del vs. M/S Unisons Hotels Ltd

ITA/1055/2005HC Delhi01 Mar 2018

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA

Section 201Section 201(1)

…disposing of the said three appeals) held inter alia, as follows : “2. Learned counsel for the Appellant/Revenue has drawn the attention of this Court to the decision of the Supreme Court in Commissioner of Income Tax v. M/s Eli Lilly & Company (India) 312 ITR 225 (2009) (SC) in which it was held that interest under Section 201 (1A) of the Income Tax Act 1961 ('Act') is a compensatory measure for withholding the tax which ought to have gone to the exchequer. It has further been observed that the object underlying Section 201(1) of the Act is to recover the tax. In the case of short deduction, the obje…

Biocon Research Limited, Bangalore vs. CIT(A) I, Bangalore

In the result, the appeal filed by the revenue is dismissed

ITA 1329/BANG/2016[2012-13]Status: DisposedITAT Bangalore18 Dec 2017AY 2012-13

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri R.N.Parbat, CIT(DR)
Section 10ASection 143(3)Section 14ASection 194CSection 40

…e charging sections of that Act de hors the machinery sections. The Act is to be read as an integrated code. Section 195 appears in Chapter XVII which deals with collection and recovery. As held in the case of CIT vs. Eli Lilly and Co. (India) (P) Ltd. (2009) 312 ITR 225 the provisions for deduction of TAS which are in Chapter XVII dealing with collection of taxes and the charging provisions of the Income Tax Act form one single integral, inseparable code and, therefore, the provisions relating to TDS apply only to those sums which are “ chargeable to tax” under the Income-Tax Act. It is true that the judgment in…

DCIT, Bangalore vs. M/S Biocon Research Ltd., Bangalore

In the result, the appeal filed by the revenue is dismissed

ITA 1251/BANG/2016[2012-13]Status: DisposedITAT Bangalore18 Dec 2017AY 2012-13

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri R.N.Parbat, CIT(DR)
Section 10ASection 143(3)Section 14ASection 194CSection 40

…e charging sections of that Act de hors the machinery sections. The Act is to be read as an integrated code. Section 195 appears in Chapter XVII which deals with collection and recovery. As held in the case of CIT vs. Eli Lilly and Co. (India) (P) Ltd. (2009) 312 ITR 225 the provisions for deduction of TAS which are in Chapter XVII dealing with collection of taxes and the charging provisions of the Income Tax Act form one single integral, inseparable code and, therefore, the provisions relating to TDS apply only to those sums which are “ chargeable to tax” under the Income-Tax Act. It is true that the judgment in…

DCIT, Bangalore vs. M/S Biocon Research Ltd., Bangalore

In the result, the appeal filed by the revenue is dismissed

ITA 1250/BANG/2016[2011-12]Status: DisposedITAT Bangalore18 Dec 2017AY 2011-12

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri R.N.Parbat, CIT(DR)
Section 10ASection 143(3)Section 14ASection 194CSection 40

…e charging sections of that Act de hors the machinery sections. The Act is to be read as an integrated code. Section 195 appears in Chapter XVII which deals with collection and recovery. As held in the case of CIT vs. Eli Lilly and Co. (India) (P) Ltd. (2009) 312 ITR 225 the provisions for deduction of TAS which are in Chapter XVII dealing with collection of taxes and the charging provisions of the Income Tax Act form one single integral, inseparable code and, therefore, the provisions relating to TDS apply only to those sums which are “ chargeable to tax” under the Income-Tax Act. It is true that the judgment in…

Biocon Research Limited, Bangalore vs. CIT(A) I, Bangalore

In the result, the appeal filed by the revenue is dismissed

ITA 1229/BANG/2016[2011-12]Status: DisposedITAT Bangalore18 Dec 2017AY 2011-12

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri R.N.Parbat, CIT(DR)
Section 10ASection 143(3)Section 14ASection 194CSection 40

…e charging sections of that Act de hors the machinery sections. The Act is to be read as an integrated code. Section 195 appears in Chapter XVII which deals with collection and recovery. As held in the case of CIT vs. Eli Lilly and Co. (India) (P) Ltd. (2009) 312 ITR 225 the provisions for deduction of TAS which are in Chapter XVII dealing with collection of taxes and the charging provisions of the Income Tax Act form one single integral, inseparable code and, therefore, the provisions relating to TDS apply only to those sums which are “ chargeable to tax” under the Income-Tax Act. It is true that the judgment in…