Commissioner Of Income Tax vs Adidas India Marketing (P) Ltd. on 10 July, 2006
4 We note that ITAT has followed the decision of this court in CIT Vs.
Adidas Marketing P.Ltd. in which decision this court held that the assessee who
was obliged to but had not deducted tax at source, would not have asked to pay
the same where the deductee had paid tax on the amount received by him as his
income. The ITAT further noted that since the deductee is a Government of
India undertaking, it cannot be presumed that it has not paid tax. We put it to the
counsel for the appellant as to whether any notice was issued by the Assessing
Officer to the Airport Authority of India (AAI), so that there is no double
taxation, the counsel for the appellant stated that this was not clear from the file.
Similarly, the counsel in reply to the court query also said that there is nothing
on record suggests that any proceedings have been initiated against Airport
Authority of India for not paying its taxes.