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 to deduct tax at source on Home Salary paid to expatriates by a foreign company outside India. The Court held that the tax-deductor-assessee was not liable to deduct tax on the Home Salary as it was not paid by the Joint Venture Company in India, thus ruling that the Joint Venture was not an 'assessee-in-default' under Section 201(1). The decision of the Tribunal and High Court was upheld, confirming that the TDS provisions are independent of the charging provisions determining assessability of income under the head 'Salaries'.