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2018 (8) TMI 2156 - AT - Income TaxLevy of interest u/s 234B - payments mad are subject to tax deduction u/s 195 - HELD THAT - An identical issue has already been adjudicated in 2018 (6) TMI 1854 - ITAT DELHI for the Asstt. Year 2010-11 in assessee s own case wherein as held decision rendered by Hon ble jurisdictional High court on the issue of interest whether leviable on the non-resident assessee or not, as per provisions of Section 234B of the Act, as the assessee was subject to withholding tax u/s 195 of the Act. No counter decision is placed on record on behalf of the Revenue. Appeal of the department is dismissed.
Issues: Appeal against order on interest u/s 234B of IT Act.
Analysis: The appeal was filed by the department challenging the order of the ld. CIT(A) regarding the levy of interest u/s 234B of the IT Act, 1961. The main contention was that the interest was not leviable as payments made to the assessee were subject to tax deduction u/s 195 of the Act. The counsel for the assessee referred to a previous order in the assessee's own case for the assessment year 2010-11, where a similar issue was decided in favor of the assessee. The CIT DR supported the AO's order but failed to counter the argument put forth by the assessee's counsel. The ITAT Delhi Bench 'F' had already adjudicated on an identical issue in the assessee's own case for the assessment year 2010-11. In that case, it was held that interest u/s 234B was not leviable on the non-resident assessee as they were subject to withholding tax u/s 195 of the Act. The ITAT found no infirmity in the CIT(A)'s decision and refused to interfere with it. Since the facts of the current year were the same as the previous assessment year, the ITAT decided to dismiss the department's appeal, following the precedent set in the earlier case. Therefore, based on the previous decision and the lack of new evidence or arguments presented by the Revenue, the ITAT upheld the order of the CIT(A) and dismissed the department's appeal against the levy of interest u/s 234B of the IT Act for the current assessment year.
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