Case Law Details
Tax deductor is entitled to interest on delayed refund when it is ordered to deduct tax even though no such liability exists
Mumbai Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of DDIT Vs. MSM Satellite (Singapore) Pvt. Ltd. [201 1-TII-04-ITAT-Mum-INTL] (Judgement Date: 26 November 2010, Assessment Year: 2007-08) held that the taxpayer is entitled to interest on delayed refund as per section 244A of the Income-tax Act, 1961 (the Act) when it is ordered to deduct tax but subsequently it was found in appeal that no such liability exists.
Further, the Tribunal held that the word ‘assessee’ includes both the actual assessee and also deemed assessee as per the Act. Accordingly, any person can be considered as an assessee even there are no actual assessment proceedings pertaining to that person.
Facts of the case
• The taxpayer is a Singapore based company, engaged in the business of acquiring television programs, motion pictures and sports events and exhibiting the same on its television channels from Singapore. The taxpayer entered into an agreement with Global Cricket V Corporation Pvt. Ltd. (GCC) for obtaining a right to broadcast various cricket matches in various countries including India.
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