THE COMMISSIONER OF INCOME TAX XVI vs. VIJAY GOPAL JINDAL

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ITA - 131 / 2009HC Delhi23 December 20118 pages
For Petitioner: RASHMI CHOPRA
AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arises in these appeals, as the issue is concluded by a previous Division Bench judgment. The appeals are accordingly dismissed.

What were the facts?

The Assessing Officer charged interest under Section 234-B and 234-C for non-payment of advance tax. The CIT(A) and ITAT set aside this order, holding that the assessee had no liability to pay advance tax as their entire income was subject to tax at source.

What were the issues?

Whether interest under Section 234-B and 234-C is leviable when the entire income is subject to tax at source. Whether the tax effect and lack of cascading effect warrant dismissal of the appeal.

Which sections of the Income-tax Act were involved?

Section 234B,Section 234C

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

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IN THE HIGH COURT OF DELHI AT NEW DELHI

ITA 337 of 2007 +

ITA 338 of 2007 ITA 131 of 2009

JUDGMENT RESERVED ON:22.7.2011 JUDGMENT DELIVERED ON:23.12.2011

ITA 337 OF 2007 (1)

COMMISSIONER OF INCOME TAX-XVI ..... APPELLANT

... RESPONDENT MR.LESTNER GARNETT

ITA 338 OF 2007 (2)

.... APPELLANT COMMISSIONER OF INCOME TAX-XVI

... RESPONDENT MR.LESTNER GARNETT

ITA 131 OF 2009 (3)

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MR. VIJAY GOPAL JINDAL

CORAM:

HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MS. JUSTICE REVA KHETRAPAL

A.K.SIKRI, ACTING CHIEF JUSTICE:

1.

For orders, see ITA 459 of 2008.

ACTING CHIEF JUSTICE

(REVA KHETRAPAL)

JUDGE

DECEMBER 23, 2011

skb

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\* IN THE HIGH COURT OF DELILI AT NEW DELILI + ITA 459 of 2008

ITA 459 of 2008 ITA 337 of 2007

ITA 338 of 2007

ITA 131 of 2009

JUDGMENT RESERVED ON:22.7.2011 JUDGMENT DELIVERED ON:23.12.2011

(1) <u>ITA 459 of 2008</u>

MR. ROBERT MICHAEL ARTHEY C/o PRICEWATERHOUSE COOPERS (P) LTD.

.. RESPONDENT

(2) <u>ITA 337 OF 2007</u>

MR.LESTNER GARNETT ...RESPONDENT

(3) <u>ITA 338 OF 2007</u>

COMMISSIONER OF INCOME TAX-XVI ..... APPELLANT Through: Ms. Rashmi Chopra, Advocate.

Page 1 of 6

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MR.LESTNER GARNETT

(4) <u>ITA 131 OF 2009</u>

MR. VIJAY GOPAL JINDAL

CORAM: HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MS. JUSTICE REVA KHETRAPAL

A.K.SIKRI, ACTING CHIEF JUSTICE:

ITA No. 459 of 2008

- 1. Order in this appeal was reserved alongwith ITA 504/2007 and other connected matters since issue of charging of interest under Section 234-B of the Income-Tax Act had arisen in those appeals also. - Vide separate order passed today, the issue is decided in favour of the assessee.

ITA No.459/2008...337/2007.338/2007.131/2009

Page 2 of 6

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- 3. That apart, we find that the tax effect in this appeal is ₹ 4,79,170/and in view of the latest guidelines of the CBDT, the appeal is otherwise not entertainable when we find that the issue does not have cascading\neffect. - 4. It would be worthwhile to mention that the interest was charged under the aforesaid provision by the Assessing Officer on the ground that advance tax was not paid. This order was set aside by the CIT ( $\Lambda$ ) and the order of the CIT( $\Lambda$ ) has been affirmed by the IT $\Lambda$ T holding that the assessee had no liability to pay advance tax in view of the fact that his entire income was subject to tax at source. - 5. This issue also stands concluded by a Division Bench judgment of this Court in Director of Income-Tax Vs. Jacab Civil Incorporated [2010] 194 TAXMAN 495. - 6. Thus, no substantial question of law arises in this appeal which is accordingly dismissed.

1FA No.459/2008.,337/2007.338/2007.131 2009

Page 3 of 6

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ITA No. 337/2007 & ITA 338/2007

- 7. Order in this appeal was reserved alongwith ITA 504/2007 and other connected matters since issue of charging of interest under Section 234-B of the Income-Tax Act had arisen in those appeals also. - 8. Vide separate order passed today, the issue is decided in favour of the assessee. - 9. That apart, we find that the tax effect in this appeal is much less than ₹ 4 lacs and in view of the latest guidelines of the CBDT, the appeal is otherwise not entertainable when we find that the issue does not have cascading effect. - 10. It would be worthwhile to mention that the interest was charged under the aforesaid provision by the Assessing Officer on the ground that advance tax was not paid. This order was set aside by the ITAT holding that the assessee had no liability to pay advance tax in view of the fact that his entire income was subject to tax at source.

ITA No.459/2008...337/2007.338/2007.131/2009

Page 4 of 6

- 11. This issue also stands concluded by a Division Bench judgment of this Court in Director of Income-Tax Vs. Jacab Civil Incorporated [2010] 194 TAXMAN 495. - 12. Thus, no substantial question of law arises in these appeals which are accordingly dismissed.

ITA No. 131/2009

- 13. Order in this appeal was reserved alongwith ITA 504/2007 and other connected matters since issue of charging of interest under Section 234-B of the Income-Tax Act had arisen in those appeals also. - 14. It would be worthwhile to mention that the interest of ₹ 2,90,403/-and ₹3,56,637/- respectively was charged under Section 234-B & C of the Income-Tax Act by the Assessing Officer on the ground that advance tax was not paid. This order was set aside by the CIT (Λ) and the order of the CIT(Λ) has been affirmed by the ITAT holding that the assessee had no liability to pay advance tax in view of the fact that his entire income was subject to tax at source.

ITA No.459/2008.,337/2007.338/2007,J31/2009

Page 5 of 6

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- 15. This issue also stands concluded by a Division Bench judgment of this Court in Director of Income-Tax Vs. Jacab Civil Incorporated [2010] 194 TAXMAN 495. - 16. Thus, no substantial question of law arises in this appeal which is accordingly dismissed.

ACTING CHIEF JUSTICE

(REVAKHETRAPAL) JUDGE

DECEMBER 23, 2011 skb

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