2024 (1) TMI 223 - SCH - Income Tax

Additions made u/s 40(a)(ia) - Assessee in default u/s 201(1) - assessee credited lease rent to one Kerala State Co-operative Hospital Complex and Centre for Advanced Medical Services Ltd and appellant did not deduct tax for the amounts under Chapter XVII-B of the Income Tax Act, 1961 - Whether the Tribunal erred in not deleting the additions made under Section 40(a)(ia), since the second proviso introduced by Finance Act, 2012 read with the first proviso of sub-Section (1) of Section 201 absolved the assessee from being treated as an assessee in default for reason of the payment of tax by the resident, who received the said amounts? - as decided by HC 2018 (3) TMI 1022 - KERALA HIGH COURT admittedly, resident-receiver to whom the assessee paid or credited the lease rent has filed a return belatedly and not paid any tax due on the income declared. When there is no tax paid on the income declared; even if for reason of a loss return, there cannot be any claim raised by the assessee in default to absolve him from the consequences flowing from Sections 201(1) and 40(a)(ia). He will then be treated as an 'assessee in default' and would be liable to pay the amount of TDS with interest as also subject to the expenses being disallowed - HELD THAT - SLP dismissed.

Summary

The Supreme Court dismissed the Special Leave Petitions after hearing both parties represented by senior counsels. The delay was condoned, and pending applications were disposed of.