Dashmesh Transport Company Pvt. Ltd. vs Commissioner Of Income-Tax on 23 October, 1973
Similarly, the Hon'ble
High Court of Punjab and Haryana in the case of
Dashmesh Transport Co. (F) Ltd. Vs. CIT in ITA
5
ITA No. 5580 & 5581/ Mum/2015
M/s Bureau Veritas Certification (I)Pvt. Ltd., (A.Y:2011-12)
No.93 ITR 275 in similar circumstances has held
that "the transferee may be made liable for the
liability of the transferor. What really matters is that
the liability of the transferor and not of the transferee
and the mere fact that in certain circumstances that
liability can be put on the shoulders of the transferee
will not in any manner detract from the fact that the
liability to tax all the same is that of the transferor. In
view of aforesaid, the Tribunal was incorrect in
holding that the amount of tax paid by the assessee
on behalf of the transferor company was not
allowable as deduction in view of provisions
contained in section 40(a)(ii)."