2001 (9) TMI 5 - SC - Income Tax

Employees were Japanese and the salary in question had been paid by a Japanese-company in Japan. In addition thereto, the appellants had also paid salaries to these four employees but tax had been deducted at source - SCN issued - writ petition filed instead of replying SCN - The single judge dismissed the writ petition on the ground that alternative remedy was available - In appeal, the Division Bench took the same view - HC was right under section 226 of the Constitution to dismiss writ

Summary

The Supreme Court upheld the Calcutta High Court's decision regarding a show-cause notice on taxation of salaries paid to Japanese employees in India. The appellants were given ten weeks to respond to the notice, with the Income-tax Officer to make a decision within four months after the reply. The appellants were advised to present any subsequent facts for consideration during the process. The appeal was disposed of with no costs.