Case Law Details
Setting-off of sundry debtors against sundry creditors by a collection agent is not a remission of liability; withholding tax not applicable to payment for use of computer system to track freight shipments
In brief
a. Setting-off of sundry debtors against sundry creditors – not a remission of liability
In a recent decision, in the case Menlo Worldwide Forwarding India Pvt. Ltd. Vs. DCIT [2010-T11-164-ITAT-DEL-INTL](the “assessee”), the Delhi Income-tax Appellate Tribunal (the “Tribunal”) held that the recording the setting-off of sundry debtors against sundry creditors in the books would not constitute income, since the sundry creditors did not represent a trading liability and no deduction for the amount of the liability was claimed in earlier years.
b. Withholding tax not applicable to payment for use of computer system to track freight shipments
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