“Section 190(1)”
The decision most relied on for Section 190(1) is CIT v. Oriental Insurance Co. Ltd. (125 Taxmann 1094), cited in 77 judgments on BharatTax.
Leading authorities on Section 190(1)
Interest levied under Section 201(1A) for delayed remittance of Tax Deducted at Source (TDS) is compensatory in nature, not penal. It is a distinct provision for delayed remittance, similar to interest paid by Revenue on refunds.
Where the recipient of income is not liable to pay tax in India, the payer has no obligation to deduct tax at source. Consequently, no disallowance under section 40(a)(i) can be made for failure to deduct such tax.
An assessment order dispatched after the prescribed time limit is time-barred and void, even if the dispatch date is before the period of limitation for service.
Tax is not required to be deducted at source under Section 194A if the recipient of the interest income is not ascertainable and not liable to pay tax.
Tax is deductible at source under Section 194A only on interest that has 'partaken the character of income' in the hands of the recipient.
Evidence or material adduced by an assessee cannot be rejected by the Assessing Officer without conducting an enquiry into its particulars. The scope of this rule does not extend to situations where material implicates the assessee in a collusive arrangement.
Income diverted at source by an overriding title, such as a legal obligation to pay erstwhile partners for work done, is not taxable in the hands of the firm.
Expenditure claimed under section 10(23C) must be actual expenditure made during the year to be treated as an application, and provisions booked by the assessee cannot be allowed as such.
