TMI Blog2013 (7) TMI 961X X X X Extracts X X X X X X X X Extracts X X X X ..... ted on 22 entities of G.E.Group by issue of notices u/s 148 of the Income Tax Act, 1961 (hereinafter referred to as the Act ) for the AYs 2000-2001 to 2006-07. The Assessing Officer, after rejecting the objections of the assesses to the reopening of assessments, completed assessments u/s 143(3) read with S.147 of the Act. 3. The Assessing Officer held that : (a) The assessee i.e. 22 GE Overseas entities have a Permanent Establishment in India; (b) That they have a dependent agency Permanent Establishment in India in the form of G.E.India Industrial P.Ltd. (GEIIPL). 3.1. The Assessing Officer attributed profit to the Permanent Establishment and brought the same to tax. Interest was levied u/s 234A and S. 234B of the Act. Aggriev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any discretion on it. 5. Smt. Punam Sidhu, the Ld.CIT, D.R. submitted that the Revenue has not accepted the judgement of the Jurisdictional High Court on the issue and that an SLP has been filed before the Hon'ble Supreme Court which has been admitted. 6. The ld.Counsel for the assessee Mr.Sachit Jolly submits that the issue is no longer res integra in view of the decision of the Jurisdictional High Court in the case of M/s Jacob Civil Inc.(supra). 7. We have heard rival contentions. On a careful consideration of the facts and circumstances of the case and on perusal of the papers on record and orders of the authorities below, as well as case laws cited, we hold as follows. 8. Interest u/s 234B is levied for the failure t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax vs. Jacabs Civil Inc. 330 ITR 578 held as follows. Section 2(1) of the Act defines advance tax to mean the advance tax payable in accordance with the provisions of Chapter XVII-C of the Act. These provisions are contained from Section 207 onwards. Section 209 falls under this Chapter. Sub-section (1) thereof deals with four situations under which the advance tax payable by the assessee is to be computed. Admittedly, these cases do not concern with clauses (a) to (c). Clause (d) of sub-Section (1) of Section 209, which is relevant reads as under:- (d) The income-tax calculated under clause (a) or clause (b) or clause (c) shall, in each case, be reduced by the amount of income-tax which would be deductible or col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n against the payer under the provisions of Section 201 of the Income Tax Act and compute the amount accordingly. No doubt, if the person (payer) who had to make payments to the non-resident had defaulted in deducting the tax at source from such payments, the non- resident is not absolved from payment of taxes thereupon. However, in such a case, 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. 9. We thus, answer the aforesaid question in favour of the assessee as we are of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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