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2014 (1) TMI 940 - AT - Income TaxDeletion of Interest u/s 234B of the Act - Failure to pay advance tax u/s 209 of the Act - TDS to be deducted u/s 195 of the Act – Held that:- The decision in Director of Income Tax Versus M/s. Jacabs Civil Incorporated / Mitsubishi Corporation [2010 (8) TMI 37 - DELHI HIGH COURT] followed - The entire tax is to be deducted at source which is payable on such payments made by the payee to the non-resident – Once it is found that the liability was that of the payer and the said payer has defaulted in deducting the tax at source, the Department is not remedy-less and therefore can take action against the payer under the provisions of Section 201 of the Income-tax Act and compute the amount accordingly - 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 - For this reason, 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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