INGRAM MICRO INC. Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) By this petition, that came to be admitted on 28/7/2014, petitioner is challenging the jurisdiction of respondent no.1 to issue notice under Sec. 201 of the Income Tax Act, 1961 (the Act) purporting to treat petitioner as an assessee in default and the order dtd. 10/12/2013 passed by respondent no.1 (the impugned order) holding that respondent no.1 has valid jurisdiction to issue notice under Sec. 201 and Sec. 201 (1A) of the Act for the alleged non deduction of tax at source on alleged purchase of shares of a company incorporated in Bermuda.

(2.) Though the notice dtd. 25/3/2010 and order dtd. 10/12/2013 impugned in this petition have been challenged on various grounds, the primary ground (even for a moment other grounds are not pressed) is that petitioner was not liable to deduct any tax because petitioner did not make any payment to anybody and, therefore, petitioner cannot be considered to be in breach of the obligation under Sec. 195 of the Act and consequently, the notice under Sec. 201 and Sec. 201 (1A) of the Act is not maintainable.

(3.) Sec. 195 of the Act says Other sums.