2016 (10) TMI 399

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..... ll be an assessee in default, on failure to discharge the obligation to deduct tax, under Section 201 of the Income Tax Act, 1961. Following GE Packaged Power Inc. (2015 (1) TMI 1168 - DELHI HIGH COURT ) it must be said that since the primary liability of deducting tax for the concerned period is that of the payer, the assessee is not liable to pay interest as charged by the settlement commissi .....

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..... on a Division Bench judgment of the Hon ble Delhi Court reported at [2015]373ITR65(Delhi) in (Director of Income-Tax (International Taxation) Vs. GE Packaged Power Inc). He has submitted that, the issues raised in the present writ petition were considered in such judgment. They were answered in favour of the assessee. Similar view may be taken by this Hon ble Court. The learned Advocate for the .....

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..... ment, caused the payer to erroneously refrain from deductiing tax under section 195; it must thus suffer an interest for non-payment of advance tax. The case of the assessees, on the other hand, is that the position of law in Jacabs (supra) must apply and that the obligation was upon the payer to deduct tax at source before making remittances to them; the payer s failure to do so cannot invite an .....

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