9911796707
TMI Blog2013 (7) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... e order under section 154 on the ground that the words used in section 209(1)(d) is 'tax deductible at source'. Without appreciating that the said word is used in the context of payment of advance tax in the course of the 'current year' and the actual liability for levy of interest under section 234B has to be determined in the clear terms of Explanation 1 to section 234B of the Income-tax Act, 1961 ?" The only issue raised herein is as regards the levy of interest under section 234B of the Income-tax Act for tax deductible at source. The said levy was sought to be made by invoking section 154 of the Income-tax Act. The assessee preferred an appeal before the Commissioner of Income-tax (Appeals), who agreed with the assessee holding that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, for the short payment of TDS, interest was levied under section 201(1A) of the Income-tax Act for the period July, 1990, to October, 1993. By proceedings dated February 4, 1997, the Assessing Officer passed the rectification order under section 154 of the Income-tax Act on the premise that while giving effect to the order of the Commissioner of Income-tax (Appeals), interest was omitted to be charged. Thus the officer levied interest under section 234B of the Income-tax Act. Tax Case Appeal No. 219 of 2005 relates to the assessment year 1994-95. Originally under proceedings under section 143(1)(a) of the Income-tax Act, the Assessing Officer assessed the receipt as royalty, taxable at 30 per cent. On appeal, the Commissioner of Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment year 1991-92, this court held that in terms of the agreement, the rate of tax was to be at 20 per cent. only. Thus on the merits, the assessment stood concluded, holding that the assessee could be taxed only at 30 per cent. and not at 30 per cent. Leaving this aside for a moment, as far as the present case is concerned, the proceedings were taken under section 154 of the Income-tax Act on the ground that since the advance tax paid was less than 90 per cent., interest under section 234B of the Income-tax Act was leviable on the assessee. It is seen from the facts narrated above that as on the date of passing of the order under section 154 of the Income-tax Act, the question as to whether the rate of tax at which the recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imilar circumstances, reported in CIT v. Sedco Forex International Drilling Co. Ltd. [2003] 264 ITR 320 (Uttaranchal) ; [2004] 186 CTR 144, followed subsequently by the Bombay High Court in the decision reported in Director of I. T. (International Taxation) v. NGC Network Asia LLC [2009] 313 ITR 187 (Bom) ; [2009] 222 CTR (Bom) 86, which followed the decision of this court reported in CIT v. Madras Fertilizers Ltd. [1984] 149 ITR 703 (Mad) and held that reading section 191 along with section 209(1)(d) of the Incometax Act, when the entire tax is deducted at source and the consequence of non-deduction is given under section 201, the question of levy of interest under section 234B on the assessee did not arise. We agree with the view taken b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
