Section 191 of the Income Tax Act
The decision most relied on for Section 191 is State of West Bengal v. Kesoram Industries Limited (10 SCC 201), cited in 279 of the 241 judgments on BharatTax that turn on this section.
Leading authorities on Section 191
A taxing statute must be interpreted strictly based on what is clearly expressed, without implying anything not stated or importing provisions to supply deficiencies. A person must clearly fall within the ambit of the charging section for tax to be levied.
A deductor cannot be treated as an assessee in default for failure to deduct tax at source if the recipient has already paid the income tax directly. The onus is on the deductor to prove that the recipient has paid the tax.
Interest paid for the broken period on purchase of dated government securities and interest received for the broken period on sale of such securities, if treated as trading assets, can be claimed as revenue expenditure under section 28. Income falling under section 18 of the Income Tax Act cannot also fall under section 28.
Tax is deductible at source under Section 194A only on interest that has 'partaken the character of income' in the hands of the recipient.
