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M/s. Larsen and Toubro Ltd. Versus Deputy Commissioner of Income Tax, Business Circle Tambaram.

2015 (10) TMI 1466 - ITAT CHENNAI

Credit for foreign tax paid in Mauritius - whether should not be excluded while computing interest under section 234C? - whether the payment made by the assessee on 10.09.2004 in Mauritius can be considered as advance tax as was done by the assessee or can it be a self-assessment tax as was considered by the Assessing Officer? - Held that:- The Commissioner of Income Tax (Appeals) has considered the submissions of the assessee and the averments of the Assessing Officer elaborately and held that .....

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March of the relevant financial year (F.Y. 2003-04) the said payment can only constitute the self assessment taxes. When the statute clearly provides that all the payments made after the 31st March of the financial year are self assessment taxes, and therefore the issue cannot be considered as debatable. Mere argument for the sake of argument cannot make the clear and unambiguous provisions into debatable ones. AO rightly treated the tax payments made after the end of the financial year (paid o .....

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dra Prasad, JM: This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-IX, Chennai dated 26.02.2013 for the assessment year 2004-05. The only issue in the appeal of the assessee is that Commissioner of Income Tax (Appeals) erred in concluding that credit for foreign tax paid in Mauritius should not be excluded while computing interest under section 234C of the Act. 2. In this case, assessee filed return of income on 01.11.2004 declaring income of ͅ .....

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al year and accordingly calculated interest under section 234C of the Act. Against this order, the assessee preferred appeal before the Commissioner of Income Tax (Appeals) contending that entire income of the assessee accrued in Mauritius from the activity of permanent establishment in Mauritius and hence no part of the profit of permanent establishment in Mauritius is taxable in India. The assessee paid tax in Mauritius in time and therefore cannot be considered as assessee in default. Insofar .....

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e Tax Act. The Commissioner of Income Tax (Appeals) considering the submissions and contentions of the Assessing Officer in the order passed under section 154 of the Act dismissed the appeal of the assessee against which the assessee is in appeal before us. 3. Counsel for the assessee reiterated the submissions made before the Commissioner of Income Tax (Appeals) and submits that there is no justification in considering the payment made by the assessee on 10.09.2004 as selfassessment tax instead .....

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e on 10.09.2004 in Mauritius can be considered as advance tax as was done by the assessee or can it be a self-assessment tax as was considered by the Assessing Officer. 6. In the grounds of appeal, assessee though raised grounds in respect of section 234B in para 3.1 to 3.5, no arguments have been advanced and therefore, these grounds are dismissed as not argued. 7. The Commissioner of Income Tax (Appeals) has considered the submissions of the assessee and the averments of the Assessing Officer .....

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e that the taxes paid in Mauritius are as per the existing provisions of Mauritius Income Tax Act. However, the said provisions of Mauritius Income Tax Act are applicable as far as the determination of tax liabilities in Mauritius. When it comes to India, the taxability of the income in India is governed by the Indian Income Tax Act r.w. the relevant Double Taxation Avoidance Agreement (DTAA) with the concerned country. 5.6 When, the appellant's tax liabilities are to be determined, only the .....

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. ii) Levy of interest u/s 234A, 2348, 234C and 2340 of the Act, upto the date of assessment etc. iii) Levy of interest u/s 220(2)of the Act In the instant case, the action of AO in treating the above payment in Mauritius as 'self assessment tax' ( as against the appellant's claim of advance tax) has lead to levy of interest u/s 234C of the Act. 5.7 The provisions of See 234C of the Act provide for levying of interest if the appellant fails to pay the tax within the specific periods .....

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