2019 (3) TMI 721

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..... cided by the Tribunal in the aforesaid appeals was as to whether the assesse was liable to pay interest u/s 201(1A) of the Act. This issue arose for consideration under the following facts and circumstances. During the financial year ("FY") 2010-11 relevant to AY 2011-12, the Assessee had paid amounts of Rs. 1,76,75,754/- to Panduit Corporation. Taxes were not deducted by the Assessee on these payments, as according to the Assessee it was under the belief that TDS provisions were not applicable to these transactions. The learned Assessing Officer ("AO") however confronted the Assessee with the fact that Panduit Corporation was a foreign company incorporated in the United States of America which had opened a branch office in Bengaluru and th .....

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..... ection 201(1A) of the Act. 3. On appeal by the assessee, the CIT(A) agreed with the view taken by the AO. On further appeal, Tribunal upheld the order of the CIT(A). 4. In these misc. applications, the assessee has contended that in Ground No 2.1(c) of the appeal, the Assessee had challenged the order of the Ld CIT(A) upholding charge of interest for the delayed recovery of taxes when in fact the payments made by the Petitioner to Panduit Corporation were not liable to tax. The Ground No 2.1(c) of the appeal is extracted below for ease of reference: 2.1 The authorities below have erred in not appreciating that: a) b) c) No taxes being payable to the Government, the question of delay in recovery of taxes and interest for delay does .....

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..... to the payments made by the assessee. The Assessee has therefore in this petition pleaded that since the payment made by it to Panduit Corporation wards purchase of goods and equipment is not chargeable to tax under section 195 of the Act and hence interest cannot be demanded under section 201(1A) of the Act. 4. We have heard the submissions of the ld. counsel for the assessee who reiterated the averment made in the misc. petitions. The ld DR on the other hand brought to our notice that the Tribunal in paragraph 10 & 11 of the order dated 4/6/2018 has exhaustively dealt with this aspect to come to the conclusion that the Tribunal has taken a concise decision by following the decision of the Hon'ble Madras High Court in the case of CIT Vs. .....

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