TMI Blog2012 (4) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 234B and 234C are to be charged by excluding the tax, which was deductible from the assessee as per provisions of Chapter XVII of the Act - set aside the Order and direct the AO to recompute the interest - Appeal of assessee partly allowed. - IT Appeal NOS. 1715 to 1719 (MDS.) OF 2011 - - - Dated:- 18-1-2012 - N.S. SAINI, GEORGE MATHAN, JJ. G. Baskar for the Appellant. K.P. Gopakumar for the Respondent. ORDER Per Bench These five appeals are filed by the assessee against the different orders of the ld. CIT(A) I, Coimbatore dated 12.08.2011 in appeal Nos. 187/10-11, 186/10-11, 185/10-11, 183/10-11 and 182/10-11 in the assessment years 2003-04, 04-05, 05-06, 07-08 and 08-09. Shri G. Baskar, Advocate represente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -resident tax ought to have been deducted u/s.195 of the IT Act as done by M/s Core Carbon Private Ltd. itself for the A.Y:2006-07. 6. The Commissioner of Income Tax (Appeals) ought to have therefore directed the Assessing Officer to re-compute the interest leviable/levied u/ss.234A, 234B and 234C of the IT Act as if tax had been deducted at source by M/s. Core Carbon Private Ltd. at rates applicable to a non-resident." 3. At the time of hearing, the ld. AR for the assessee submitted that the assessee is in appeal in the years under consideration on the only issue of levy of interest under section 234A, 234B and 234C of the Act. He argued that right from the first agreement, M/s. Core Carbon (P) Limited had deducted tax at source on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional figure, ought to have been deducted for the purpose of computing interest leviable under sections 234B and 234A. 4. The ld. AR further placed reliance on the decision of the Delhi Bench of the Tribunal in the case of Lucent Technologies International Inc. v. Dy. CIT [2009] 28 SOT 98 and submitted that the Tribunal in that case has held that where entire amount received by the non-resident in India was liable for TDS, there was no liability to pay any advance tax and therefore, there was no question of levy of interest under section 234B of the Income Tax Act. 5. The ld. DR fully justified the orders of lower authorities. 6. We have heard the rival submissions and perused the material available on record. The undisputed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the Assessing Officer under section 234A, 234B and 234C of the Act on the basis of the amount of tax actually deducted at source. We find that the Delhi Bench of the Tribunal in the case of Lucent Technologies International Inc. ( supra ) has held that, where the entire amount received by the assessee was liable for TDS, there was no liability to pay any advance tax and therefore, there was no question of levy of interest under section 234B of the Act. Further, we find that section 209(1)(d) reads as under: 209. Computation of advance tax. (1) The amount of advance tax payable by an assessee in the financial year shall, subject to the provisions of sub-sections (2) and (3), be computed as follows, namely: - ( a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest under section 234A, we find that the same is chargeable for default in furnishing return of income. Further the language employed in section 234A is different from the language employed in section 234B and 234C of the Act. Section 234C, in its explanation clearly states that tax due on returned income is to be computed by excluding the amount of tax deductible or collectable at source in accordance with the provisions of Chapter XVII. Section 234B, in its explanation provides that the assessed tax is to be computed by excluding any tax deducted or collected at source in accordance with the provisions of Chapter XVII. In contrast to the above, section 234A provides for exclusion of amount of any tax deducted or collected at source. Thu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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