Law:

Section:

Section 234B of the Income-tax Act, 1961 - Interest chargeable When a duty is cast on payer to deduct and pay the tax at source, on payer's failure to do so interest under section 234B cannot be imposed on payee assessee [In favour of assessee] Director of Income Tax (International Taxation) v. NGC Network ASIA LLC [2009] 222 CTR (Bom.) 86 In view of the decision of CIT v. Sedco Forex International Drilling Co. Ltd. [2003] 264 ITR 320(Uttaranchal), it was to be held that when a duty is cast on the payer to deduct and pay the tax at source, on payer's failure to do so, no interest under section 234B can be imposed on the payee assessee. Parag Vyas and P.S. Sahadevan for the Appellant. Paras Kaka and A.K. Jasani for the Respondent. JUDGMENT By the Court: The Revenue has come in appeal on the following question : "Whether on the facts and in the circumstances of the case the Tribunal was right in law in upholding the assessee's contention that when the assessee is not liable to pay advance tax, there is no question of charging interest under s. 234B of the Act by relying upon the decision in the case of Motorola Inc. rendered by Hon'ble Special Bench of Tribunal, "A" Bench, Delhi, reported in [2005] 96 TTJ (Delhi)(SB) 1 : [2005] 95 ITD 269 (Delhi)(SB)." 2. Our attention is invited to the following findings recorded by the Tribunal in its order dt. 12th Dec, 2007 : "Thus, in the given case, though assessee is assessable in respect of the income (though of course and it would not be if its quantum appeal is successful), it is not liable to pay advance tax, since tax is deductible by the payer M/s NTIL, though not actually deducted by it." 3. The submission on behalf of the Revenue is that, on failure of the payer to deduct the advance tax, it is the liability of the assessee to pay the advance tax even on the amount which had not been deducted under s. 195 of the IT Act. 4. Our attention also has been invited to the observations of the Full Bench of this Court under the Indian IT Act, 1922 in the case of CIT v. Daimler Benz A.G. 1977 CTR (Bom) 568 : [1977] 108 ITR 961 (Bom). One of the issues considered was the consequence Of failure to pay advance tax by the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492