DCIT (INTERNATIONAL TAXATION), NEW DELHI vs. M/S. ANDRITZ AG, NEW DELHI

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ITA 6394/DEL/2015Status: DisposedITAT Delhi23 August 2018AY 2011-123 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the facts for the current year were identical to the preceding year, and the issue was already decided in favour of the assessee, the Department's appeal had no merit.

What were the facts?

The Department appealed the CIT(A)'s decision that interest under Section 234B was not leviable on the assessee. The assessee argued that the issue was covered by a previous ITAT order for the preceding assessment year.

What were the issues?

Whether interest under Section 234B is leviable on a non-resident assessee when payments made to it are subject to tax deduction under Section 195.

Which sections of the Income-tax Act were involved?

Section 234B,Section 195

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘B’, NEW DELHI

For Appellant: Ms Ritu Theraja
Hearing: 21.08.2018Pronounced: 23.08.2018

ORDER

Per N. K. Saini, AM:

1.

This is an appeal by the department against the order dated 14.9.2015 of ld. CIT(A)-42, New Delhi. The only effective ground reads as under:

That the ld. CIT(A) has erred in law and on the facts of the case in holding that the interest u/s 234B of the IT Act, 1961 is not leviable in the assessee’s case because payments made to it are subject to tax deduction u/s 195 of the Act.

Andritz AG 2. During the course of hearing, the learned counsel for the assessee, at the very outset, stated that this issue is squarely covered vide order dated 21.6.2018 in assessee’s own case in for the preceding assessment year 2010-11 in ITA No.3413/Del/2015. Copy of the said order was shown, which is placed on record.

3.

The learned CIT DR although supported the order of the AO but could not controvert the aforesaid contention of the learned counsel for the assessee. After considering the submissions of both the parties and the 4. material on record, it is noticed that an identical issue has already been adjudicated by the ITAT Delhi Bench ‘F’ in for the Asstt. Year 2010-11 in assessee’s own case wherein vide order dated 21.6.2018, it has been held as under:

We have considered the rival submissions and have gone through the entire material available on record and the case laws relied by the learned CIT(A). We find that the conclusion reached by the ld. CIT(A) is based on the decision rendered by Hon’ble jurisdictional High court on the issue of interest – whether leviable on the non-resident assessee or not, as per provisions of Section 234B of the Act, as the assessee was subject to withholding tax u/s 195 of the Act. No counter decision is placed on record on behalf of the Revenue. We, therefore, finding no infirmity in the impugned order, are not inclined to interfere with the same. Accordingly, the appeal of the Revenue deserves to be dismissed.

5.

Since the facts for the year under consideration are identical to the facts of the Asstt. Year 2010-11, respectfully following the Andritz AG aforesaid order in assessee’s own case, we do not see any merit in this appeal of the Department. 6. In the result, appeal of the department is dismissed. (Order Pronounced in the Court on 23/08/2018)

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