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Showing contexts for: nonexistent entity in Aaa Technologies P.Ltd, Mumbai vs Ito 2(1)(1), Mumbai on 17 May, 2019Matching Fragments
38. Ld. Counsel for the assessee submits that as far as the issue of TDS was concerned, the answer was obvious and self-evident from the above discussion. Neither the Assessee had paid to anybody on account of ITA NOs. 3454 & 3455/MUM/2017 M/s. AAA Technologies Pvt. Ltd., consultancy charges nor were they involved in any such transaction. Most importantly, there was no obligation on its part to pay anybody or to give anybody any consultancy charges. In fact, there was no relationship as a payer and payee, as a debtor and creditor at all. As such, the question of deducting tax at source to such nonexistent entity simply does not arise. Even otherwise, there arises no TDS liability, if the payee is non-resident and no income accrued in India and the payments were made outside India. Ref. GE India Technology P. Ltd. v. CIT [(2010) 327 ITR 456 (SC)].