An Asset management company can be treated as an agent of non-resident investors

Court :Mumbai bench of the Income-tax Appellate Tribunal Citation : Birla Sunlife Asset Management Company v. ITO [2010] 38 SOT 523 (MUM), Brief :Asset management company can be treated as an agent of its non-resident investors under section 163 of the Income-tax Act, 1961 (the Act). Facts of the case • The taxpayer an asset management company of a mutual fund, made payments to the investors residing in United Arab Emirates (UAE), upon redemption of units of a debt scheme of a Mutual Fund, without any deduction of tax at source. • The Assessing officer held the taxpayer to be an agent of s...