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TMI Blog2008 (7) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... lants. S. K. Posti for the respondent. JUDGMENT The judgment of the court was delivered by PRAFULLA C. PANT J. - Both these appeals, preferred under section 260A of the Income-tax Act, 1961, involve a common question of law, as such both are being taken up together for their disposal. 2. Income-tax Appeal No. 54 of 2007 (old No. 139 of 2000), is directed against the order dated August 24, 1999, passed by the Income-tax Appellate Tribunal, (Delhi Bench "A"), passed in I. T. A. No. 381/Del/99, whereby the appeal of the assessee was allowed holding that he is not liable to pay interest under section 234B of the Income-tax Act, 1961. Income-tax Appeal No. 72 of 2007 is directed against the order dated September 15, 2006, pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income-tax payable by the assessee was subject to tax deduction at source (hereinafter referred as TDS) under section 195 of the Income-tax Act, 1961. In the case relating to I. T. A. No. 54 of 2007, the Assessing Officer (hereinafter referred as "the AO") while assessing the tax under section 143 of the Income-tax Act, 1961, on the income shown in the return, directed that interest be charged under section 234B of the Act. Aggrieved by the said order the assessee filed appeal before the Commissioner of Income-tax (Appeals), which was dismissed, vide order dated December 29, 1998. On this, the assessee went in appeal before the Income-tax Appellate Tribunal (hereinafter referred as "the ITAT"), which allowed the appeal and held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, has not deducted tax at source, is the individual assessee liable to pay interest under section 234B of the Act or not. 6. Before further discussions, we think it just and proper to quote the relevant provisions of law to show when the interest is payable under section 234B of the Act. Section 208 of the income-tax Act, 1961, reads as under: "208. Advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee during that year, as computed in accordance with the provisions of this Chapter, is five thousand rupees or more." 7. The procedure to compute the tax is given in the next section, i.e., section 209. Section 234B of the Act provides that the interest shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel for the appellants/Revenue argued that since tax was admittedly liable to be deducted at source and there was default in the deduction as such assessee is liable to pay the interest under section 234B of the Act. On the other hand, Sri S. K. Posti, learned counsel for the respondent/ assessee argued that for the negligence or inaction on the part of the employer or the company, who engaged the individual assessee, the individual assessee cannot be held responsible for it. 9. On behalf of the assessee our attention is drawn to the cases of CIT v. Century Building Industries P. Ltd. [2007] 293 ITR 194 (SC); [2007] 7 SCC 262 and CIT v. Sedco Forex International Drilling Co. Ltd. [2003] 264 ITR 320 (Uttarakhand). We ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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