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2014 (1) TMI 937 - AT - Income TaxDeletion of Interest u/s 234B of the Act Liability to pay advance tax - Short payment of Advance Tax Short deduction of TDS by the person making payment Held that:- Interest u/s 234B is levied for the failure to pay advance tax as per the provisions of S.208 and 209 of the Act - All the assesses in these cases, are non-resident companies - the Revenues received by these G.E.Overseas Entities are held as liable to tax in India, then, as per S.195 of the Act, the payers of such income were under an obligation to deduct tax at source and consequently, in terms of pre-amended S.209(I)(d) of the Act, the assessee was not required to pay advance tax, as the advance tax payable by the tax payer is to be calculated, by reducing the tax on current income, by the amount of tax which would be "deductible or collectable" at source under the Act, during the said F.Y Relying upon Director of Income Tax vs. Jacabs Civil Inc. [2010 (8) TMI 37 - DELHI HIGH COURT]. If the person (payer) who had to make payments to the non-resident had defaulted in deducting the tax at source from such payments, the non- resident is not absolved from payment of taxes thereupon - the non-resident is liable to pay tax and the question of payment of advance tax would not arise - This would be clear from the reading of Section 191 of the Act along with Section 209 (1) (d) of the Act - it would not be permissible for the Revenue to charge any interest under Section 234B of the Act - The Tribunal has rightly held that the assessee was not liable to pay any interest under Section 234B of the Act - Decided against Revenue.
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