TIOL-DDT 959 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 959</font><br>
25.09.2008<br>
Thursday</strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax – Discrimination, DTAA and a path breaking judgement</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today we bring you a landmark order from the ITAT Pune Bench, which was briefly covered in yesterday's DDT.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This decision is important for the reason that for the first time it was held that <font color="#FF6633">“in order to establish discrimination, not only that a taxpayer has to demonstrate that he has been subjected to different treatment vis-à-vis other taxpayers, but also that the ground for this differentiation in treatment is unreasonable, arbitrary or irrelevant”</font> (Paragraph 35). This is quite a paradigm shift from the approach of the judicial authorities in India, which have considered a differentiation <em>per se </em> as discrimination. The ITAT has linked the same to the non discrimination provisions in Indian Constitution i.e. Article 15 and 16 and added that, “While construing the scope of this right to equality, Hon'ble Supreme Court of India has time and again held that notwithstanding wide scope of this constitutional guarantee, Article 14 does not rule out classification for the purpose of legislation” to justify reasonable classification being out of the ambit of non discrimination clauses.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Of course, it could be argued, that the above observations are India-US tax treaty specific because the ITAT order also states that “Unlike the thrust of OECD Model Convention, as argued before us, the differentiation between resident taxpayers and non resident taxpayers is thus institutionalized in the Indo US tax treaty itself “( Para 64) and ITAT noted that certain provisions in the US tax laws for permanent establishment tax levied on foreign companies, higher withholding tax requirements for foreign companies, higher penalties for foreign companies, which are kept out of discrimination by the US on the basis of reasonableness. (Para 36,37 and 38).</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is now interesting is whether this approach will also hold good for non discrimination clauses in other tax treaties that India has entered into.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Another interesting aspect is that the ITAT has referred to Technical Explanation to the US Model Convention and relied upon the same to find out meanings of the terms employed in the Indo US tax treaty ( Para 28 to 33), and concluded that “In the case of tax treaties in which United States is a partner, Technical Explanation to the US Model Convention is indeed the best guide for contemporaneous thinking on the expressions finding place in the tax treaty…………..for the reason that, as mentioned in the preamble to US Model Convention itself, ‘a principal function of the Model is to facilitate negotiations by helping the negotiators identify differences between income tax policies in the two countries' which presupposes that the other negotiating treaty partner is aware of the US Model Convention and its accompanying Technical Explanation” (Para 31).</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Finally, there is an interesting discussion on the question “Does a difference in wording of a treaty provision, as used in two different treaties signed by a contracting State, necessarily imply difference in intent and scope of the treaty provision?” (Heading of paragraphs 54 to 59). On this question, the Tribunal concluded:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Unlike a piece of tax legislation, which is creature of a sovereign state, a tax treaty is a result of bilateral negotiations. Therefore, the wordings of a tax treaty are essentially dependent on the priorities of, and acceptability by, the Contracting States parties to such a tax treaty……………. particularly bearing in mind the fact that treaties are products of bilateral negotiations and that the wordings of a treaty essentially depend on comfort level of the treaty partners with the words so employed, we are of the considered opinion that merely because different expressions are used in two different tax treaties entered into by a country, it is not necessary that these different expressions must lead to distinct results. There can be more than one path to reach the same destination, and merely because someone has chosen a different path, it is not necessary that he must reach a different destination as well. Not too much needs to be read into deviations in wordings employed in tax treaties, particularly when the meaning of the words so employed is clear and unambiguous. (Para 58 and 59).</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See Breaking News</strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SSI Exemption – Brand Name – SC Judgement and Board Instructions</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 8/2003- Central Excise provides full exemption from Central Excise duty to goods manufactured by small-scale units i.e. units whose aggregate value of clearances did not exceed Rs. 4 Crores in the preceding financial year. The exemption is available for clearance up to Rs.1.5 Crore in a financial year if the prescribed conditions are fulfilled. One of the conditions of this notification is that goods bearing the brand name or trade name of another person are not eligible for exemption barring a few exceptions such as goods cleared as ‘original equipment', goods bearing the brand name or trade name of KVIC, or if such goods are manufactured in a factory which is located in a rural area.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Disputes have arisen in the past about the applicability of this condition to goods that bear the brand name of another person but which are sold under that brand name by the buyer of the goods and not by the SSI unit affixing the brand name. Such goods are normally manufactured by the SSI unit as per the orders of the customer for further use by the latter in the manufacture of the final product. Examples of such goods are elastic tapes used in the manufacture of undergarments, castings, packing materials such as printed cartons of paper, HDPE bags, polypropylene caps, metal containers etc. On the basis of circulars/ clarifications issued by the Government, from time to time, the brand name restriction was not being applied to such goods and the benefit of the exemption was being extended on the ground that there is no nexus between the person manufacturing the goods and the brand name. In the case of <em>Kohinoor Elastics Pvt. Ltd</em>. </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2005/2005-TIOL-120-SC-CX.htm" target="_blank">2005-TIOL-120-SC-CX</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">,
the Supreme Court held that the wording of the notification does not allow
the benefit of the exemption in this situation as the notification does not
envisage a nexus between the manufacturer and the brand for it to attract
the mischief of the brand name restriction. Accordingly, the mere affixation
of brand name of another person is adequate to disqualify the goods for SSI
exemption.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the light of the Supreme Court decision, instructions were issued by the Board to raise protective demands in case where the benefit of SSI exemption was being extended by the filed formations in such cases by Board's letter F.No. 115/1/2008-CX.3 dated 16 th June, 2008.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Subsequently, by Notification No. 47/2008-Central Excise dated 01. 09.2008, the benefit of the exemption was made available to specified goods bearing the brand name or trade name of another person if they are in the nature of packing materials, namely, printed cartons of paper or paper board, metal containers HDPE woven sacks, adhesive tapes, stickers, pp caps, crown corks and metal labels.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants the trade and industry to be suitably informed and Commissioners to take <strong>necessary action accordingly</strong>.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Why should the Board be so evasive and shy?</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">First of all, if they want the trade to be informed, why can't they issue a proper Public Circular, instead of a private letter to the Chief Commissioners?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Then what is the <strong><em>necessary action</em></strong> that the Commissioners have to take <strong><em>accordingly</em></strong>?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=7799" target="_blank">TIOL-DDT 941 - 01.09.2008 </a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2008/notification_1.htm" target="_blank">CBEC F. No. 354/124/2008-TRU dated the 1st September, 2008</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import of live-stock and products – prohibition – ITC HS Classification amended</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has amended the Condition 16 of Chapter 1A (General Notes to Import Policy) of the ITC (HS) Classifications of Export and Import items, 2004-09 as under:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16. Import into India of the following live-stock and live-stock products shall be prohibited from all countries, in view of notifiable Avian Influenza (both Highly Pathogenic notifiable Avian Influenza and Low Pathogenic notifiable Avian Influenza):</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) domestic and wild birds (excluding poultry and captive birds); [<font color="#FF6633"><strong>It was earlier</strong> domestic and wild birds including the captive birds (excluding poultry)</font>;]</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) unprocessed meat and meat products from Avian species including wild birds (except poultry);</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) semen of domestic and wild birds.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further, the Central Government also prohibits the import into India from the countries reporting notifiable Avian Influenza (both Highly Pathogenic notifiable Avian Influenza and Low Pathogenic notifiable Avian Influenza), the following live-stock and live-stock products, namely:</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Live poultry and captive birds; [<font color="#FF6633">It was earlier Live poultry;</font>]</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) day old chicks, ducks, turkey and other newly hatched Avian species;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) meat and meat products from Avian species including wild birds;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) hatching eggs;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) egg and egg products (except Specific Pathogen Free eggs);</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f) feathers;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(g) live pig and unprocessed pig products; [<font color="#FF6633"><strong>It was earlier</strong> live pig and pig products (except processed pig bristles)</font>;]</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(h) pathological material and biological products from birds;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) product of animal origin (from birds) intended for use in animal feeding or for agricultural or industrial use.</font></p>
</blockquote>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Provided that the prohibition shall not be applicable on the import of pathological material and biological products for diagnostic and research purposes from South Asian Association for Regional Cooperation member countries on specific request. <strong>[This is an addition]</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provided further that the prohibition shall also not be applicable on the import of processed pet food containing the ingredient of meat and meat products from avian species, pig and product of animal origin (from birds) intended for use in animal feeding.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2008/dgft08not045.htm" target="_blank">DGFT Notification No. 45 (RE-2008)/2004-2009, Dated : September 23, 2008</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax – Agents of Non- Residents need not file electronic returns</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In yesterday's <strong>DDT</strong>, we mentioned, “All our efforts to trace this circular failed. We will bring it to you later in the day”.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now we have it.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2008/it08cir08.htm" target="_blank">CBDT Circular No. 8/2008, Dated: September 22, 2008</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Grand Building for Kolkata Central Excise</strong></font></p>
<p align="center"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/cobweb/KENDRIYA.jpg" alt="Legal Corner Icon" width="307" height="230" hspace="5" border="0" align="center"></b></strong></strong></strong></strong></strong></strong></strong></font></strong></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The <strong>“KENDRIYA UTPAD SHULK BHAWAN”</strong> has come up at 180, Shantipally, Rajdanga Main Road, Rash Behari Connector, Kolkata-700107. The Offices of the Chief Commissioner of Central Excise & Service Tax, Commissionerate of Central Excise, Kolkata–I, Kolkata-III, Kolkata-V and Service Tax Commissionerate are now housed and operational from the new building. It is four storied in the Front Block and eight storied in the Rear Block. The Front Block accommodates the Chief Commissioner's office and Commissionerates' Head quarters whereas, the rear block accommodates field formations of these Commissionerates. It is one of the most magnificent Government Buildings in the City.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope the interiors are kept as grand as the exteriors.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Following are important telephone & Fax Nos. of the new Building:</font></p>
<div align="justify">
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Name of the office </strong></font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Telephone Nos.</strong></font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Fax No.</strong></font></div></td>
</tr>
<tr>
<td rowspan="2" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chief Commissioner of Central Excise & Service Tax</font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416787</font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416798 </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416795 </font></td>
<td valign="top"> </td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional Commissioner, Chief Commissioner Office</font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416843</font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416823</font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner of Central Excise, Kolkata-I </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416814 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416889 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional Commissioner, Kolkata—I </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416810 </font></p></td>
<td valign="top"><font color="#333333"> </font></td>
</tr>
<tr>
<td valign="top"><font color="#333333"> </font></td>
<td valign="top"><font color="#333333"> </font></td>
<td valign="top"><font color="#333333"> </font></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner of Central Excise, Kolkata-III</font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416846</font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416766</font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional Commissioner, Kolkata—III</font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416770 </font></p></td>
<td valign="top"><font color="#000000"> </font></td>
</tr>
<tr>
<td valign="top"><font color="#333333"> </font></td>
<td valign="top"><font color="#333333"> </font></td>
<td valign="top"><font color="#333333"> </font></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner of Central Excise, Kolkata-V</font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416761</font></p></td>
<td valign="top"><font color="#333333"> </font></td>
</tr>
<tr>
<td width="272" height="40" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional Commissioner, Kolkata—V </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416762 </font></p></td>
<td valign="top"><font color="#333333"> </font></td>
</tr>
<tr>
<td width="272" height="25" valign="top"><font color="#333333"> </font></td>
<td valign="top" width="102"><font color="#333333"> </font></td>
<td valign="top" width="108"><font color="#333333"> </font></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner of Service Tax, Kolkata</font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24416839</font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24429976</font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional Commissioner, Service Tax </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">27022019 </font></p></td>
<td valign="top"><font color="#000000"> </font></td>
</tr>
</table>
</div>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600">– Tomorrow's cases</font></strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font></strong></font>Customs</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Imported
components of TV cannot classified as TVs – Revenue loses big case against
Sony in Supreme Court</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> this case the goods brought were not having the essential character of CTVs. We do not find anything to take a view that the goods were in unassembled or dis-assembled condition and they should be taken to be the complete CTVs, particularly when there is no finding recorded anywhere on facts that all these goods could make 1500 CTVs. However, we accept the argument that the goods brought in different consignments separately on the basis of valid import licences would not attract the import duty as if they were the finished goods. Rule 2(a) would apply only when the imported articles presented unassembled or disassembled can be put together by means of simple fixing device or by riveting or welding. In this case, complicated process would be required for the user of those parts.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Electrolyzed - Tribunal confirms a demand of Rs 23 lakhs along with penalties on Used Mercury Scrap ‘produced' by Grasim Industries Ltd</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THEREFORE</strong>, the vital facts were wilfully suppressed by the appellants with the intention to evade payment of duty on UMS. Therefore, the proviso to Section 11A (1) of the Central Excise Act, 1944 has been rightly invoked and the extended period of five years is applicable for demanding duty. For the same reasons, the demand of interest under Section 11AB ibid and imposition of penalty under Section 11 AC ibid on the appellants are in order. The imposition of penalty on Shri A.S. Kothari, Senior Vice President (Marketing) is also justified in the facts and circumstances of the case.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TDS is only a vicarious liability and no demand on tax deductor if deductee has discharged tax obligation; But penalty is liable; No penalty when TDS not made due to confusion and legal opinion: ITAT</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> advice given by the legal expert M/s. C.C. Chokshi & co., cannot be said to be non- <em>bonafide </em> acted with any <strong>malafide</strong> intention. Moreover, the question as to whether the discount of Rs.129.90 Crores availed by the assessee can be considered to be the payment in the nature of interest contemplated u/s 194A also appears to be a debatable one, and thus the confusion existed in relation to the assessee's obligation to make deduction of tax at source can be considered to be a reasonable cause for the assessee not to make such deduction of tax at source, and consequently the penalty u/s 271C may not be attracted.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Tomorrow for the judgements</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day.</font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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