TMI Blog2014 (1) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. – the decision in Director of Income Tax Versus M/s. Jacabs Civil Incorporated / Mitsubishi Corporation [2010 (8) TMI 37 - DELHI HIGH COURT] followed - it would not be permissible for the Revenue to charge any interest under Section 234B of the Act – also , the Tribunal has rightly held that the assessee was not liable to pay any interest under Section 234B of the Act – Decided against Revenue. - IT Appeal Nos. 6034 to 6048 (Delhi) of 2010, ITA No. 345/DEL-2011, ITA No. 346/DEL-2011, ITA no. 347/DEL-2011, ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of the Assessing Officer on the issues of: (a) reopening of assessments;(b) existence of Permanent Establishment; and (c) attribution of profits to the Permanent Establishment. On the issue of levy of interest u/s 234B of the Act, the Ld. Commissioner of Income-tax (Appeals) followed the binding judgment of the Jurisdictional High Court in the case of M/s Jacab Civil Inc. 330 ITR 578 (Delhi) and decided the issue in favour of the assessee. 4.1 All the Revenue appeals that are before us are challenging the deletion of interest levied by the Assessing Officer u/s 234B of the Act, by the Ld. Commissioner of Income-tax (Appeals). 4.2 The grounds are extracted for ready reference. "1. On the facts and in the circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese 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(1)(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. Consequently, it is argued that interest u/s 234B of the Act, was not leviable on the facts of the present case. Reliance is placed on the following decisions. (a) Jacabs Civil Incorporated case (supra) (b) CIT v. Madras Fertilizers Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me aforesaid; and the amount of income-tax as so reduced shall be the advance tax payable." 8. This clause categorically uses the expression "deductable or collectable at source" and it is this clause which is incorporated by the Uttaranchal High Court in the said judgment (supra) in the manner already pointed above. The scheme of the Act in respect of non-residents is clear. Section 195 of the Act puts an obligation on the payer, i.e. any person responsible for paying to a non-resident, to deduct income-tax at source at the rates in force from such payments excluding those incomes which are chargeable under the head 'Salaries'. Therefore, the entire tax is to be deducted at source which is payable on such payments made by the payee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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