Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1961 - lncome Tax Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Income Tax Act, 1961 - s.40(a)(ia) and s.197 - Whether the provisions of s.40(a)(ia) shall be attracted when the amount is not c payable to a contractor or sub-contractor but has been actually paid - Question is when the word used in s.40(a)(ia) is 'payable', whether this Section would cover only those contingencies where the amount is due and still payable or it would also cover the situations where the amount is already paid but no advance tax is deducted thereupon - Held: The provision would cover even those cases where the amount stands paid -As per s.194C, iax has to be deducted when the amount is credited to the account of the contractor or when the payment is actually made and by virtue of s.200, assessee is required to deposit that amount to the credit of Central Government within the stipulated time as mentioned in r.30(2) - E When the entire scheme of obligation to deduct the tax at source and paying it over to the Central Government is read holistically, it cannot be held that the word 'payable' occurring in s.40(a)(ia) refers to only those cases where the amount is yet to be paid and does not cover the cases where the amount is actually paid - Otherwise, even when it is found that a person, like the appellant, has violated the provisions of Chapter XVIIB (or specifically ss. 194C and 200 in the instant case), he would still go scot free, without suffering the consequences of such monetary default in spite of specific provisions laying down these consequences - Income Tax Rules - r. 30(2) |
Judge | Hon'ble Mr. Justice Arjan Kumar Sikri |
Neutral Citation | 2017 INSC 432 |
Petitioner | M/s. Palam Gas Service |
Respondent | Commissioner Of Income Tax |
SCR | [2017] 3 S.C.R. 836 |
Judgement Date | 2017-05-03 |
Case Number | 5512 |
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