Tuesday 23 July 2013

Mere tax deduction by payer doesn't decide taxability in hands of recipient; penalty order set aside

IT/ILT : Mere fact that payer deducted tax at source cannot be a sole reason to conclude that amount is taxable in hands of recipient and, therefore, if recipient does not offer said amount to tax in return of income, it does not necessarily follow that penalty has to be imposed under section 271(1)(c)


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