2016 (8) TMI 1357 - SCH - Income Tax

Interest liability under Section 234B - non-payment of advance tax - non deduction of tds -assessee was manufacturing equipment relating to oil and gas, energy, transportation and aviation, for supply to customers in India - assessee had a permanent establishment ( PE ) in India - As decided by HC 2015 (1) TMI 1168 - DELHI HIGH COURT No interest is leviable on the respondent assessees under Section 234B, even though they filed returns declaring NIL income at the stage of reassessment. The payers were obliged to determine whether the assessees were liable to tax under Section 195(1), and to what extent, by taking recourse to the mechanism provided in Section 195(2). The failure of the payers to do so does not leave the Revenue without remedy; the payer may be regarded an assessee-in-default under Section 201 - Held that - Delay condoned. Leave granted.