TMI Blog2017 (11) TMI 1297X X X X Extracts X X X X X X X X Extracts X X X X ..... and reject the ground raised by the Revenue. - Decided in favour of assessee. - I.T.A. No.5109/DEL/2015 - - - Dated:- 22-11-2017 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER For The Revenue : Sh. Gaurav Dudeja, Sr. DR For The Assessee : S h . Sandeep Karhail, Adv. ORDER PER H.S. SIDHU : JM The Revenue has filed this Appeal against the impugned Order dated 13.05.2015 of the Ld. CIT(A)-43, New Delhi relevant to assessment year 2006-07. 2. The following are the grounds raised by the Revenue:- 1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law in deleting the interest chargeable u/s. 234B by holding that interest is not leviable in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous objections against the assessment proceedings which were duly disposed off. Subsequently notices u/s. 142(1) and 143(2) of the Act were issued to the assessee. The assessee is a company incorporated in USA and is engaged in the business of administering and operating a global electronic payment system, which enables its members of commercial banks and other financial institutions to authorize and settle transactions between themselves. The assessee had been filing a NIL return of income in earlier years on the basis that although it has business connection in India but the income arising there from is not taxable in India since it does not have any Permanent Establishment (PE) in India. This issue has, however, been settled after it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the years for which MAP resolution has been passed and considering the increasing trend of the operating margin, it is estimated that the percentage for AY 2006-07 should fall between margin percentages for AY 2005-06 and AY 2007-08. The margin percentage as computed by Competent Authorities under the MAP resolution for AY 2005-06 is 18.14% and for AY 2007-08 it is 23.85%. Accordingly, the margin percentage applicable on the assessee for the subject year is increased from 16.55% to 20% and accordingly, the income of the assessee was assessed at ₹ 10,78,31,687/- and inter u/s. 234B of the Act has also been levied vide order dated 28.5.2014 passed u/s. 144C(3) read with section 148/143(3) of the I.T. Act, 1961. Against the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax payable u/s. 208 r.w.s. 209(1)9d) of the Act. In the absence of any liability to pay advance tax, the provisions of section 234B are not applicable. The appellant has relied upon following case laws: - DIT vs. Jacobs Civil Incorporated, 330 ITR 578 (Del). - DIT vs. NGC Network Asia LLC 313 ITR 187 (Bom). - Motorola Communications Inc. 95 ITD 269 (Delhi-SB) ITAT - CIT vs. Sedco Forex International Drilling Inc. 264 ITR 320 (Uttaranchal) In view of jurisdictional Delhi High Court decision, I hold that interest u/s. 234B is not leviable as all payments to the nonresident appellant are subject to tax deduction at source u/s. 195. The AO is directed to delete the interest levied u/s. 234B. This ground of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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