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2022 (9) TMI 1632 - HC - Income TaxTDS u/s 195 - Royalty - amounts paid by the concerned persons resident in India to non-resident, foreign software suppliers - Whether constitutes as taxable income deemed to accrue in India u/s 9(1)(vi) - interest u/s 234B - HELD THAT - First question of law urged in the present appeal is covered by the decision of the Supreme Court in the case of Engineering Analysis Centre of Excellence Pvt. Ltd. 2021 (3) TMI 138 - SUPREME COURT . Interest u/s 234B - ITAT has erred in holding that no interest u/s 234B shall be levied in case the assessee has any income chargeable to tax in India and if the same is subject to withholding to tax, without appreaciating that the obligation of the assesseee to pay advance tax is independent of the obligation of the payer to deduct tax at source and such obligation of the assessee continues u/s 190 and 191 of the Act, even in case of non-deduction at source by the payer. Assessee ,who appears on advance notice, has handed over a copy of an assessment order u/s 254 read with Section 143(3) of the Act passed in pursuance to the impugned order. The same is taken on record. The relevant portion of the said order reads as under - 6. As the fact matrix over the years remains the same and in view of the decision of the Hon'ble Supreme Court in the company own's case for A.Y. 2008-09 and A.Y. 2012-13, the income declared by the assessee in ITR is accepted and assessed accordingly. Assessed at NIL income. Necessary forms are being issued. Keeping in view the aforesaid fact that the assessee has now been assessed at nil income, this Court is of the view that the issue of interest under Section 234B of the Act is infructuous.
The Delhi High Court dismissed the income tax appeal challenging an ITAT order for Assessment Year 2013-14. The appellant's argument on interest under Section 234B was rejected as the respondent was assessed at nil income. No substantial question of law arose, so the appeal was dismissed. (Case: Engineering Analysis Centre of Excellence Pvt. Ltd. Vs. CIT)
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