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TMI Blog2015 (1) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act read with section 195 of the Act this interest must be accounted for or credited in the account of some person who is chargeable under the Act. In other words, this remittance of interest must result in an income which is chargeable under the Act. In those circumstances tax may be deducted at source. But where this interest is not so chargeable, no tax is deducted. In this case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kyo-Mitsubishi Limited relating to the assessment year 1995-96. The assessee in its appeal has raised several questions for adjudication as stated in paragraph-9 of the stay application. Heard Mr. Nageswar Rao, learned Advocate for the appellant and Md. Nizamuddin, learned Advocate for the Revenue. They submitted that the issue is covered by the judgment in ABN Amro Bank NV-vs-CIT, WB-III, Kolk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the appellant and the respondents. First of all, a proper meaning has to be ascribed to the expression chargeable under the provisions of this Act. Section 195(1) says that, if any interest is paid by a person to a foreign company, which interest is chargeable under the provisions of this Act tax should be deducted at source. The word chargeable is not to be taken as qualifying only the phra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, in our opiniion, there was and still is no obligation on the part of the appellant s said branch to deduct tax while making interest remittance to its head office or any other foreign branch. The issues raised by the questions above stand settled by the aforesaid judgement. It has been brought to our notice that a Special Leave Petition preferred from the judgement in ABN Amro (supra) to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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