Deduction of Tax at Source ::

Last updated: 07 September 2007

Court :
Tribunal

Brief :
Held that when 194-I was introduced for TDS on rent payments, it was not envisaged that it will cover payments to hotels also. Further, assessee had itself sought clarification regarding TDS on hotel rent from the Deptt. which proves bona fide of the assessee. Hence assessee was not in default for not deducting tax at source.

Citation :
Asstt. CIT Vs. British Airways

Deduction of Tax at Source Asstt. CIT Vs. British Airways 4/29/2005 IT Appeal Nos. 4008 to 4011 (Del.) of 2004 Case Fact: Whether assessee can be held to be in default for not deducting tax at source for payments for room rents to hotel, where assessee was under bona fide belief that he was not liable to deduct tax. Decision: Held that when 194-I was introduced for TDS on rent payments, it was not envisaged that it will cover payments to hotels also. Further, assessee had itself sought clarification regarding TDS on hotel rent from the Deptt. which proves bona fide of the assessee. Hence assessee was not in default for not deducting tax at source.