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Issues involved: Challenge to decision of Income Tax Appellate Tribunal u/s 195 of Income Tax Act, 1961 regarding exemption of interest payment on loans from non-resident companies u/s 10(15)(iv)(f) of the Act.
Summary: Issue 1: Challenge to decision of Income Tax Appellate Tribunal u/s 195 of Income Tax Act, 1961 The appeals were filed by the Revenue challenging the decision of the Income Tax Appellate Tribunal, which allowed the appeals filed by the assessee against the decision of the adjudicating authority u/s 195 of the Income Tax Act, 1961. The assessee had taken loans from non-resident companies for projects in India, claiming exemption for interest payments u/s 10(15)(iv)(f) of the Act. The assessing officer rejected the applications under Section 195, stating that exemptions had been withdrawn by the Central Government. The Commissioner of Income Tax (Appeals) upheld this decision. However, the Income Tax Appellate Tribunal, based on its previous decision in the assessee's case, held that tax deduction at source was not required while paying interest to non-residents. The appeals were filed challenging these orders. Issue 2: Delay in filing Notices of Motions The Notices of Motions were filed after a delay of more than 1200 days. The reasons provided for the delay were deemed unconvincing. Additionally, remittances to the non-resident companies had already been made in light of the Income Tax Appellate Tribunal's order. The court found that condoning such a significant delay would cause serious prejudice to the assessee. It was noted that if the Revenue suffered due to the Income Tax Officer's negligence, appropriate action should be taken against the concerned Officer. Consequently, the court decided not to condone the delay and dismissed all the Notices of Motion with no order as to costs, directing the appeal papers to be consigned to the Record Department.
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