Holding company not liable to deduct TDS on Shares purchased by its Subsidiary

Ingram Micro Inc. Vs ITO (Bombay High Court) The undisputed fact is that petitioner is not the purchaser of shares of THL. Respondent no.1 has failed to appreciate that the shares have been purchased by IMAHI, a wholly owned subsidiary of petitioner and not by petitioner and, therefore, the question of Section 195 of the Act being applicable to petitioner would not arise. Respondent no.1 has proceeded on an erroneous basis that petitioner had acquired the shares of THL through its subsidiary IMAHI without even giving any reason for such a finding. Respondent no.1 has not appreciated or underst...