THE COMMISSIONER OF INCOME TAX -INTERNATIONAL TAXATION-3 vs. SUMITOMO CORPORATION

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ITA/185/2018HC DelhiDLHC01008808201816 February 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arose for consideration. The Court found that the ITAT's decision on tax deduction at source and interest leviable under Section 234B was covered by the judgment of the Uttaranchal High Court in CIT vs. Sedco Forex International Drilling Co. Ltd. Furthermore, the High Court noted that this issue was also covered by its own prior judgment in Director of Income Tax International Taxation vs. GE Packaged Power Inc. Consequently, the appeal filed by the Revenue was dismissed. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue, Commissioner of Income Tax - International Taxation-3, appealed against a decision of the Income Tax Appellate Tribunal (ITAT). The appeal concerned the ITAT's ruling on tax deduction at source and the interest leviable under Section 234B of the Income Tax Act, 1961. The ITAT had based its decision on the Uttaranchal High Court's ruling in CIT vs. Sedco Forex International Drilling Co. Ltd. The High Court noted that this issue was also covered by its own prior judgment in Director of Income Tax International Taxation vs. GE Packaged Power Inc.

What were the issues?

1. Whether the Income Tax Appellate Tribunal (ITAT) erred in its decision regarding tax deduction at source and the interest leviable thereon under Section 234B of the Income Tax Act, 1961. The Revenue argued that the ITAT's decision was incorrect. The Revenue relied on the principle that tax deduction at source and interest provisions are to be applied as per the Act. The Assessee's contentions are not recorded in the judgment. The High Court considered the applicability of the Uttaranchal High Court's decision in CIT vs. Sedco Forex International Drilling Co. Ltd. and its own decision in Director of Income Tax International Taxation vs. GE Packaged Power Inc.

Which sections of the Income-tax Act were involved?

Section 234B

AI-generated summary — verify with the full judgment below

$~10 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 185/2018 THE COMMISSIONER OF INCOME TAX -INTERNATIONAL TAXATION-3

..... Appellant

Through: Mr. Ruchir Bhatia, Sr. Standing Counsel.

versus

SUMITOMO CORPORATION

..... Respondent

Through: Mr. Prakash Kumar, Advocate.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA

O R D E R %

16.02.2018

The only question urged by the Revenue in this appeal is with respect to the correctness of the Income Tax Appellate Tribunal’s (ITAT) decision on tax deduction at source and the interest leviable thereon under Section 234B of the Income Tax Act, 1961. The ITAT had relied upon the Uttaranchal High Court’s decision in the case of Commissioner of Income Tax & Anr. vs. Sedco Forex International Drilling Co. Ltd., (2004) 186 CTR (Uttaranchal)144. This issue is also covered by the judgment of this Court in the case of Director of Income Tax International Taxation vs. GE Packaged Power Inc, (2015) 373 ITR 65. Consequently, no question of law arises. The appeal is dismissed.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J FEBRUARY 16, 2018 nn

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