9911796707
TMI Blog1990 (10) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... are that the assessee entered into an agreement with the said American company for uprating the generation of electricity at its Indraprastha Power Station,New Delhi. Under this agreement the assessee had to pay a sum of 64,500U.S.$. In order to remit the said amount to the American company the assessee on 23-7-1983 moved an application before the concerned ITO for the issue of a No Objection Certificate contending that no tax was payable in respect of the said payments. The ITO after hearing the assessee passed an order dated6-8-1983directing the assessee to deduct tax at the rate of 40% of the amount proposed to be remitted. Thereafter on19-11-1983the ITO passed an order under section 163 treating the assessee as an agent of the said non- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce under section 163(2) was issued after an application under section 195(2) was made by the assessee, the passing of the order under section 195(2) without disposing of the proceedings under section 163, which was material in determining the liability of the assessee under section 195, is mala fide and it may be held that the liability to deduct the tax under section 195 had been wrongly placed on the assessee, as he was declared to be an agent subsequently and as such the payment of tax of Rs. 2,00,000 be directed to be refunded. 3. That the CIT(A) has wrongly mentioned that the show-cause notice under section 163(2) had been issued on the 19th of Nov. 1983 and has, therefore, drawn wrong inferences of fact law." 4. Before us also t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards tax deducted at source from the payments due to the American company. This amount of Rs. 2 lakhs does not belong to the assessee. It belonged to the American company and on its behalf it has been made over to the Government of India towards income-tax. After the amount was deposited by the assessee, the ITO issued a notice under section 148 to the assessee to file the return in respect of the foreign company and it filed a return and an assessment has been made. Thus, the amount deposited by the assessee now stands appropriated towards the demand created by the assessment order, against which an appeal is stated to be pending before the CIT(A). It is not shown that the demand raised through the assessment order is less than Rs. 2 lakhs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax at source. The ITO held that the petitioner was liable to deduct tax at source. This view was challenged before the Hon'ble High Court in the Writ Petitions. Subsequently, the petitioner, i.e., Coromandel had riled returns of income as agent of the non-resident West German company. Assessments were made and, like the case before us, appeals were preferred and were pending when the Writ Petitions had come up for hearing. The Hon'ble High Court held that the order passed by the ITO under section 195 had been overtaken by subsequent events and that the subsequent events made the issue raised in the writ petitions academic. Similar is the situation before us. After the passing of the order under section 163 the appellant did not seek a cance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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