2005 (7) TMI 63

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..... it is clear that the assessee tried to solve the dispute amicably, therefore, it cannot be said that there was any mala fide intention on the part of the assessee” - No question of law much less a substantial question of law therefore arises for our consideration to warrant admission of these appeals - - - - - Dated:- 15-7-2005 - Judge(s) : T. S. THAKUR., BADAR DURREZ AHMED. JUDGMENT The only question that fell for consideration before the Income-tax Appellate Tribunal was whether there was reasonable cause for not deducting tax at source under section 192 of the Income-tax Act, 1961 (for short "the Act") in respect of the retention money paid outside the country to the Japanese expatriates working in India. The Tribunal upon consid .....

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..... sel for the Revenue, argued that while the Tribunal had held that the facts and circumstances of these cases were similar to those of the three cases referred to by the Tribunal, there was in fact no such similarity. He contended that the Tribunal was duty bound to enumerate the circumstances before recording a finding that the same constituted a reasonable cause for not making the deductions. We have given our anxious consideration to the submissions of Mr. Jolly but find it difficult to accept the same. We say so for two precise reasons. In the first place, the question whether there was any reasonable cause for not making a deduction is a question of fact as held by a Division Bench of this court in CIT v. Itochu Corporation [2004] 268 .....

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..... se of the hearing. That apart the question considered by the Tribunal and by this court in the cases decided earlier precisely was whether failure to deduct tax at source on the retention money paid to the Japanese expatriates working in India was justified. The finding recorded in the said cases took into consideration the circumstances in which the failure had arisen and held that the same constituted a reasonable cause. The same question arises before us in these appeals. Here too the failure to deduct arose in relation to Japanese expatriates in India, in circumstances which the Tribunal has held are similar to those in the said previous cases. Mr. Jolly all the same argued that there was a solitary distinction which made all the diff .....

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