Commr.Of Income Tax,New Delhi vs M/S Eli Lilly & Company (India) P.Ltd

The Supreme Court addressed the applicability of TDS provisions under Chapter XVII-B of the Income-tax Act, 1961, specifically regarding the obligation of a tax-deductor-assessee to deduct tax at source on Home Salary paid by a foreign company to expatriates outside India. The Court held that such payments are not subject to TDS under Section 192(1) as they are not made by the Indian Joint Venture company, thus affirming the lower courts' decisions that the tax-deductor-assessee was not an 'assessee-in-default' under Section 201(1). The ruling clarifies the independence of TDS provisions from charging provisions concerning assessability of income under the head 'Salaries'.