9911796707
TMI Blog2012 (10) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is a leading manufacturer of telecom equipments in the world. ALU group has a substantial presence in India. The Group provides services in the areas of GSM and CDMA infrastructure, 3G, Broadband, IP Multimedia Sub-system (IMS), Transmission Equipment, development and implementation of IN Platform and other applications, EPABX, Space Equipment and Telecom Infrastructure projects with Railways (DMRC), Roads, Defence and Aviation to various clients in India. This group started its Indian operations in the year 1982 when it entered into an agreement with Indian Telecom Industries Ltd. (ITI). During the year under consideration, the assessee supplied telecom equipments to various companies such as Bharat Sanchar Nigam Ltd. and Bharti Airtel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ALIL. The AO determined net income chargeable to tax as attributable to PE in India @ 2.5% of the sales made by the assessee in India. Accordingly, assessment was framed at an income of Rs.6,55,033/- and also levied the interests u/s 234 A, 234 B and 234 C. 4. Before the Ld. CIT (A) the assessee questioned the levy of interest u/s 234 B by the AO at Rs. 3,46,360/-. The Ld. CIT (A) being convinced with the contention of the assessee has deleted the interest levied u/s 234 B following the decision of Hon'ble Jurisdictional High Court of Delhi in the case of DIT v. Jacabs Civil Incorporated/Mitsubishi Corpn. [2011] 330 ITR 578. This action of the Ld. CIT (A) has been questioned before the Tribunal. 5. In support of the grounds the Ld. DR has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me was chargeable to tax and as per Section 195 it was responsibility of payer to deduct the tax and for default of payer the company should not be visited with liability u/s 234 B of the Act. 6. The Ld. AR on the contrary tried to justify the first appellate order and referred the provisions laid down u/s 209(1)(d) of the Act. He submitted further that the decision of Hon'ble Jurisdictional High Court of Delhi in the case of Jacabs Civil Incorporated Mitsubishi Corpn. (supra) is squarely applicable in the case of assessee. Informed further that on an identical issue in a batch of nine appeals in the case of group companies i.e. ITAT v. Alcatel Lucent USA Inc ITA No. 3821 and 3824 Delhi 2011 and Asstt. DIT v. Alcatel Lucent World Services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esponsibility of an assessee to pay advance tax arises under the provisions of Section 208 read with Section 209 and 210 the mode of computation of advance tax is given in Section 209 of the Act. As long as the assessee has discharged its obligation to pay advance tax as per the provisions of Section 208 read with Sections 209 and 210 he cannot be held liable for defaulting in payment of advance tax. Section 234B and Section 234C only provide a method of computation of interest in case of default by an assessee to pay advance tax as stipulated in Sections 208, 209 and 210 of the Act. The undisputed fact in the present case remained that the tax on the entire income received by the assessee was required to be deducted at appropriate rates by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e at the rates in force from such payments excluding those incomes which are chargeable under the head 'Salaries'. Therefore, the entire tax is to be deducted at source which is payable on such payments made by the payee to the non-resident. Section 201 of the Act lays down the consequences of failure to deduct or pay. These consequences include not only the liability to pay the amount which such a person was required to deduct at source from the payments made to a non-resident but also penalties, etc. Once it is found that the liability was that of the payer and the said payer has defaulted in deducting the tax at source, the Department is not remedy-less and, therefore, can take action against the payer under the provisions of section 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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