Case Law Details
FSL Projects Limited Vs DCIT (ITAT Hyderabad)
In the case of FSL Projects Limited Vs DCIT, ITAT Hyderabad directed the verification of TDS exemption certificate issued under section 195(3) of the IT Act.
The crux of the issue lay in the non-deduction of tax at source by FSL Projects Limited in payments made to IGTL Solutions (USA) and True Dial Technologies INC. The Assessing Officer deemed FSL Projects Limited as an assessee in default under section 201(1) of the Act due to the absence of tax deduction and application for exemption under section 195(3).
Despite the subsequent issuance of a certificate under section 195(3) for IGTL Solutions (USA), the CIT(A) upheld the initial order, emphasizing the timing of the exemption. The Tribunal affirmed this decision, prompting an appeal to the High Court.
The High Court, upon scrutinizing the certificate, emphasized its potential impact on the taxability of remittances to IGTL Solutions (USA). It directed the Tribunal to reevaluate the exemption’s effect on FSL Projects Limited’s liability.
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