S. 195 & Samsung Electronics: SC Update

In CIT vs. Samsung Electronics 320 ITR 209, the Karnataka High Court held that u/s 195 the payer was not entitled to consider whether the payment was chargeable to tax in the hands of the non-resident recipient or not.

A batch of appeals challenging the said judgement was heard by a Supreme Court Bench of the Hon’ble Chief Justice S. H. Kapadia and Hon’ble Mr. Justice K. S. Radhakrishnan. After extensive hearing, judgement was reserved today (19.8.2010).

The assessees were represented by S/ Shri. F. S. Nariman, Harish Salve, S. Ganesh & M. S. Syali, Sr. Advocates while the department was represented by Shri. Vivek K. Tankha, Addl. Solicitor General.

See Also Van Oord 36 DTR 425 (Del) & Prasad Productions 3 ITR (Trib) 58 Che (SB) where Samsung Electronics was not followed.

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