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2012 (10) TMI 315 - HC - Income TaxInterest on TDS - Payment made to Joint Venture - ITAT held that it is not an Association of Persons and TDS is required to be deducted - held that:- at least till the Advance Ruling Authority passed an order, the Department itself did not deem it fit to reject the assessee's claim that the payments were made under Section 194C, treating the joint venture as Association of Persons. In the background of these circumstances, we hold that the reliance placed on the decision of the Apex Court in CIT v. British Airways [2010 (1) TMI 114 - SUPREME COURT] in almost similar circumstances, comes to the aid of the assessee herein. - [Commissioner of Income-tax, New Delhi Versus Eli Lilly & Company (India) Pvt. Ltd. 2009 (3) TMI 33 - SUPREME COURT] It is a matter of record that the foreign company had remitted tax as per Section 44BBB at 4.8% and had also sought for refund therein. In the light of the said decision, we hold that the assessee cannot be mulcted with any liability by way of interest to be charged under Section 201(1A). Thus, applying the decision in British Airways (supra), considering the consistent stand taken by the assessee and the parties to the agreement that the status of the joint venture was only Association of Persons, we hold that there could be no case for levying interest under Section 201(1A).
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