“Section 197(1)”

Supplementary commission forional or extra services does not fall within the ambit of Section 194H of the Income Tax Act, 1961. This may affect the applicability of certificates issued under Section 197.

The amendment to Section 40(a)(ia) by the Finance Act, 2010, making TDS remittance before the due date under Section 139(1) a condition for deduction, is retrospective from AY 2005-06. Procedural lapses should not lead to excessive disallowances, particularly when payment has been made to a resident.

External Development Charges (EDC) paid by a developer to a government body like Haryana Shahari Vikas Pradhikaran (HSVP) for a development project are contractual payments, making them liable for tax deduction at source under Section 194C of the Income-tax Act, 1961.

An assessee is entitled to credit for Tax Deducted at Source (TDS) even if the income in respect of which TDS was deducted is not disclosed in the return. The Income-tax Department cannot deny TDS credit solely on the grounds that the income was not offered to tax.

Mere cash deposits in a bank account, without further tangible material, are not sufficient on their own to invoke reassessment proceedings under Section 147 of the Income Tax Act. There must be tangible material and application of mind to form a 'reason to believe' that income has escaped assessment.

Once Tax Deducted at Source (TDS) is deducted and paid to the Central Government, credit for such tax must be given to the assessee, irrespective of the assessment year to which it relates. This principle applies even to amended provisions of Section 199(1) of the Income Tax Act, 1961.

This case stands for the proposition that evidence gathered during a search under section 132, particularly statements recorded under section 132(4), can be used in subsequent assessment proceedings.

Part reimbursement of expenses does not constitute income if the services rendered are under the direct control and supervision of the recipient.