GE INDIA TECHNOLOGY CEN.P.LTD. vs COMMR.OF I.T.

The Supreme Court held that the obligation to deduct tax at source (TAS) under Section 195 of the Income Tax Act, 1961 arises when payments made to a non-resident are deemed to constitute income chargeable to tax in India. The Court clarified that merely remitting payments does not automatically trigger this obligation unless the payer has applied for and received permission for non-deduction. The High Court's ruling was upheld, affirming that the Department's argument regarding the necessity of such application was valid.