S. 263 not justified due to multiple view on applicability of TDS

Brief of the Case The Subsidiary Co. had mere reimbursed the Bank Gurantee Commission to its holding Co. & there is no money borrowed or debt incurred. Therefore, provisions of sec. 2(28A) and sec. 194A do not apply. Payment made to holding Co. is not “income by way of interest”. The impugned receipt would be in the nature of reimbursement of expenses incurred by it & therefore does not attract TDS provision of Section 194A. As regards applicability of TDS provisions, not two but three views exist on the impugned issue – (i) TDS u/s 194H – which was discussed ...