“Section 226(3)”
The decision most relied on for Section 226(3) is Hindustan Coca Cola Beverage Pvt. Ltd. v. CIT (293 ITR 226), cited in 576 judgments on BharatTax.
Leading authorities on Section 226(3)
The deductor cannot be treated as an assessee-in-default under Section 201(1) if the deductee has already paid the tax or offered the impugned receipts in their return of income. However, interest under Section 201(1A) for delayed deposit of tax can still be levied up to the date of filing of the return of income by the deductee.
The imposition of fees for late filing of TDS/TCS returns prior to the Finance Act, 2015 amendments was not illegal, and the Rajasthan High Court found no justification to interfere with such compensatory fees.
The doctrine of mutuality applies only when there is complete identity between the contributors to a common fund and the participants in its surplus. Income received from non-members or distinct classes of members who do not share this identity is not covered by mutuality and is taxable.
Mere production of documents does not amount to full and true disclosure; the assessee must actively and specifically disclose all material facts. Reopening of assessment under Section 147 is permissible if the Assessing Officer did not consciously apply mind to an issue, or if new information revealing escapement of income comes to light.
A trust's exemption is cancelled if its property is used for the benefit of a person prohibited under section 13(3), or if the trust fails to accurately reflect its income, thereby not truly disclosing the income arising from trust property.
A revised assessment order cannot direct the Assessing Officer to undertake an exercise that should have been completed during the original assessment, as this is not legally permissible.
Withholding tax provisions apply to payments made to non-residents for services rendered.
The Gujarat High Court examined the legality of a warrant of authorization and subsequent seizure of cash under Section 132A of the Income Tax Act, where the cash was found with a cotton broker apprehended by police.
