2019 (6) TMI 311 - HC - Income Tax

Interest payable u/s 234B - Collection of interest for non-deposit of advance tax in respect of the consideration received by the non-resident assessee - payer is liable to deduct TDS on payment - PE in India - DTAA - HELD THAT - This Court notices that for another assessment year this Court had, following its previous order in The Commissioner of Income Tax International Taxation-3 vs. Shanghai Electric Group Co. Ltd. 2018 (4) TMI 1716 - DELHI HIGH COURT rejected the Revenue‟s appeal. Tribunal had followed the decisions of this Court in the cases of Director of Income Tax vs. Jacabs Civil Incorporated 2010 (8) TMI 37 - DELHI HIGH COURT , Director of Income Tax, International Taxation vs. GE Packaged Power Inc. and ors. 2015 (1) TMI 1168 - DELHI HIGH COURT and Commissioner of Income Tax, International Taxation-2 vs. ZTE Corporation 2017 (1) TMI 1338 - DELHI HIGH COURT Since the Tribunal followed the rulings of this Court no question of law arises. These appeals are dismissed as untenable along with pending applications.

Summary

Issues:
1. Alleged interest payable by the assessee under Section 234B of the Income Tax Act, 1961.

Detailed Analysis:
The High Court, in this judgment, addressed the sole question of law raised by the Revenue concerning the alleged interest payable by the assessee under Section 234B of the Income Tax Act, 1961. The Court noted a previous order in a similar case where the Revenue's appeal was rejected for another assessment year. The Court highlighted that the Tribunal had followed the decisions of the High Court in various cases, including 'Director of Income Tax vs. Jacabs Civil Incorporated', 'Director of Income Tax, International Taxation vs. GE Packaged Power Inc. and ors.', and 'Commissioner of Income Tax, International Taxation-2 vs. ZTE Corporation'. Based on this precedent, the Court concluded that since the Tribunal had followed the rulings of the High Court, no substantial question of law arose in the present appeal. Consequently, the Court dismissed the appeal along with any pending applications, reiterating that the appeal did not involve any substantial question of law.

In summary, the judgment focused on the issue of alleged interest payable by the assessee under Section 234B of the Income Tax Act, 1961. The Court relied on a previous order and highlighted that the Tribunal had followed the decisions of the High Court in similar cases. This led the Court to conclude that no substantial question of law arose in the present appeal, resulting in the dismissal of the appeal and any pending applications. The judgment emphasized the importance of consistency in following legal precedents and reiterated the principle that when lower tribunals adhere to established rulings, there is no basis for raising new legal questions.