9911796707
TMI Blog2014 (9) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... ation the advance tax and self-assessment tax paid by the employees concern?" 2. The facts as culled out from the record are as under:- The respondent/assessee-M/s.Babcock Power (Overseas Projects) Ltd., a non-resident company incorporated in United Kingdom, during the Assessment Years 1987-88 to 1989-90 had a project office in India and was engaged in execution of a contract of setting up a coal based thermal plant. The respondent-assessee to fulfil their contractual obligations, had engaged their foreign technicians who were deputed to work at the Indian project office. These employees were on pay roll of UK office of the respondent-assessee and salaries were paid in foreign currency in their bank accounts abroad. These contracts of emp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal was of the view that the concerned foreign technicians had paid the tax by way of advance tax as well as the self-assessment tax and levy of interest cannot be for a period beyond the said dates, as tax stood paid/deposited. The Tribunal modified the order of the CIT(Appeals) and directed the Assessing Officer to recompute the levy of interest for the period commencing from the first day of April following the end of the relevant financial year till the date of actual payment that is the date of self-assessment tax by the concerned employees. Further, it held that no interest would be payable on the amount of advance tax paid by the respective foreign technicians. 6. This issue is no more res integra having been decided by this Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing from 1st April following the Financial Year till the date of the order of levy of interest under Section 201(1A) observing that this was erroneous and cannot be sustained. This finding/direction is questioned. 5. The admitted position is that the foreign employees of the respondent/assessee had paid tax in India either by way of advance tax or self assessment tax. Tribunal has further observed that the Assessing Officer had himself not levied interest commencing from the period of deductibility of tax till the end of the Financial Year. Accordingly, the Tribunal was not inclined to enlarge the period for which the interest was payable. In the subsequent paragraphs, Tribunal has held and directed the Assessing Officer to re-compute levy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. V.P.Damle, Third ITO, [1986] 157 ITR 812 (Bom.) and CIT v. Prem Nath Motors (P). Ltd., [2002] 120 Taxman 584 (Delhi). Therefore, the second question is also answered in favour of the Revenue and against the assessee "6. It has been further observed in American Express Bank Ltd. (supra) that if the employees (i.e. payee) had paid taxes as per the individual return/assessment, no amount as tax would be payable to that extent and the liability for interest would be only for the period commencing from the date of such tax was deductible to the date on which tax was actually paid. [CIT vs. Adidas India Marketing (P) Ltd. (2007) 288 ITR 379 Delhi and CIT - XVII vs. Trans Bharat Aviation (P) Ltd. (2010) 320 ITR 671.]. 7. In view of the afor ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
