CIT v. Kotak Securities Ltd.

340 ITR 333High Court2012#613 most cited

What is CIT v. Kotak Securities Ltd. authority for?

A deductor's bonafide belief or reliance on a Tax Residency Certificate (TRC) can influence whether they are deemed an 'assessee in default' under Section 195 for failing to deduct tax at source on payments to non-residents. The decision clarifies the due diligence required when interpreting tax treaties and TRCs for TDS compliance.

161

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. Kotak Securities Ltd. · Section 195 · Section 201(1) · Section 201(1A) · Section 40(a)(i) · bonafide belief · Tax Residency Certificate · TRC · withholding tax · TDS on non-residents · tax treaty interpretation · assessee in default

Also reported as

15 Taxmann.com 77245 CTR 3

Sections most often in play

Section 195Section 201(1)Section 201(1A)Section 40(a)(i)Section 194JSection 40(a)(ia)

Issues it is cited on

place of effective managementtax residency certificatesection 195(2)section 194htrcsection 194jwithholding taxbeneficial ownersection 40(a)(i)tax treatypermanent establishmentsection 195

Judgments citing CIT v. Kotak Securities Ltd.

M/S Kptcl, Kolar vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2413/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Mangalore vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2412/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Mangalore vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2411/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Karkala vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2410/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Karkala vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2409/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Bagalkot vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2408/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Bagalkot vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2407/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Mangaluru vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2406/BANG/2017[2013-14]Status: DisposedITAT Bangalore08 Feb 2019AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Mangalore vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2405/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kpztcl, Holenarasipura vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2404/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Holenarasipura vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2403/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Kalaburagi vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2402/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Hassan vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2401/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Shivamogga vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2400/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Bangalore vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2399/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Davangere vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2398/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Davangere vs. ITO(OSD)(Tdsltpu, Bangalore

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

ITA 2397/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Bangalore vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2396/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Bangalore vs. ITO(OSD(TDS)Ltpu, Bangalore

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

ITA 2395/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…

M/S Kptcl, Hubli vs. ITO(OSD)(TDS)Ltpu, Bangalore

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

ITA 2394/BANG/2017[2015-16]Status: DisposedITAT Bangalore08 Feb 2019AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

Section 17(1)(va)Section 192Section 201Section 201(1)

…ore the Assessee has discharged its obligation u/s.192 of the Act and hence proceedings u/s.201(1)( & 201(1A) of the Act were to be quashed. Reliance was also placed on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Kotak Securities Ltd. 340 ITR 333 (Bombay) wherein the Hon’ble Bombay High Court took the view that when the question whether there was an obligation to deduct tax at source or not on a particular payment, is highly debatable then the Assessee cannot be held to be a defaulter for not deducting tax at source ITA No.2379 to 2458/B/2017 Page 11 of 21 and consequently no disallowan…