COMMISSIONER OF INCOME TAX Vs. GINNI INTERNATIONAL LTD.

JUDGEMENT

(1.) FROM payment of income -tax and that it was applying to the competent authority for an exemption certificate for tax deduction at source. It was on the basis of the above intimation that the assessee credited to the account of the payee

(2.) IT is common ground that the assessee had two months time available to it to pay the tax, if any, deducted at source. order granting exemption to the assessee from deduction of tax at source. The AO, all the same held the assessee to be in default under s. 194A of the Act. In appeal, the CIT(A) took a contrary view and held that there was no default on the part of the assessee. The Tribunal has, by the order impugned in this appeal, concurred with that view, inter alia, holding that the assessee was entitled to take cognizance of the information pertaining to an accounting period received by it after the expiry of accounting period but before the closure of the accounts. The Tribunal further held that the being within the period of two months available to the assessee, there was no default in making the tax deduction at source.

(3.) HAVING heard Mr. Jolly, learned counsel for the appellant, we see no reason to take a different view. The assessee admittedly had a period of two months available to it to make the deposit of tax deducted at source. Even assuming that any such deduction had been made at the time of credit of the interest amount to the account of the payee, the said authorised the non -deduction of tax at source. In that view, therefore, there was no real default in compliance with the provision regarding tax deduction at source. No substantial question of law arises for consideration in this appeal which fails and is hereby dismissed.