Case Law Details
Tupperware India Pvt. Ltd. Vs CIT (International Taxation) (Delhi High Court)
The case of Tupperware India Pvt. Ltd. Vs CIT before the Delhi High Court revolves around the petitioner’s claim for the refund of excess Tax Deducted at Source (TDS) under Section 195 of the Income Tax Act, 1961, for the Assessment Year 2012-13.
The petitioner, engaged in manufacturing and trading of molded plastic items, imported molds from Dart Industries Inc. USA. While anticipating higher rental payments, the petitioner provisioned a higher TDS amount. However, the actual rent paid was lower, resulting in excess TDS of Rs. 67,41,620/-. Despite multiple applications for refund, the authorities rejected the petitioner’s claim.
The petitioner contended that since no income accrued to Dart USA, the excess TDS should be refunded. Referring to CBDT circulars, the petitioner argued that the excess TDS belonged to the deductor when income doesn’t accrue to the non-resident or is borne by the deductor.
The respondents opposed, stating only the payee could claim refunds. However, legal precedents and constitutional principles highlighted the obligation to refund unlawfully collected taxes, ensuring no unjust enrichment at the government’s expense.
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