Case Law Details
DCIT (TDS) Vs M/s. Rediff. Com. India Ltd. (ITAT Mumbai)
The dispute with regard to the nature of payment made for purchase of software was settled at rest only by Finance Act 2012 through which Explanation-4 was added to Sec. 9(1)(vii). Although the said amendment was given retrospective effect, legal maxim, lex non cogit ad impossibillia, meaning thereby that the law cannot possibly compel a person to do something which is impossible to perform.
As mentioned elsewhere, the amendment was given a retrospective effect but by that time the assessee has already done the transactions without deducting tax at source. On these facts, the assessee cannot be held to have violated the provisions of Sec. 194J of the Act.
FULL TEXT OF THE ITAT JUDGEMENT
1. Aforesaid appeal by revenue for Assessment Year [in short referred to as ‘AY’] 2012-13 contest the order of Ld. Commissioner of Income-Tax (Appeals)-60, Mumbai, [in short referred to as ‘CIT(A)’], Appeal No.CIT(A)-60/IT-31/ITO(TDS)RG.3(4)/2014-15 dated 20/06/2017 qua deletion of certain addition u/s 201(1) / 201(1A). The assessee was engaged in the business of providing online news, information, communication, entertainment and shopping services.
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