UK GRID SOLUTIONS LIMITED ,UNITED KINGDOM vs. DCIT CIRCLE INTL. TAXATION 3(1)(1), NEW DELHI

ITA 2240/DEL/2023Status: DisposedITAT Delhi13 March 2024AY 2020-21Bench: SHRI C. N. PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)34 pages
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What did the Tribunal hold?

The Tribunal held that interest under Section 234B of the Act is not chargeable when tax has been deducted at source by the buyer. The chargeability of interest under Section 234D is consequential. For AY 2020-21, the AO was directed to verify the chargeability of interest under Section 234A.

What were the facts?

The assessee, a UK-based company, received payments from Indian customers for designing, manufacturing, and supplying power transmission equipment. The Assessing Officer (AO) treated a composite contract as a single unit, despite the assessee's claim of being only an offshore supplier. The AO also levied interest under Section 234B and 234D of the Income Tax Act.

What were the issues?

Whether interest under Section 234B is leviable when tax is deducted at source, and the applicability of other interest provisions for advance tax payments.

Which sections of the Income-tax Act were involved?

Section 234B,Section 234D,Section 234A,Section 209(1)(d)

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Income Tax Appellate Tribunal, DELHI BENCH “D”: NEW DELHI

Before: SHRI C. N. PRASAD & SHRI M. BALAGANESH

For Appellant: Shri Ajay Vohra, Sr. Adv, Shri Aditya Vohra, Adv, Shri Arpit Goyal, CA
For Respondent: Shri Vizay B. Vasanta, CIT DR
Hearing: 15/12/2023Pronounced: 13/03/2024

PER M. BALAGANESH, A. M.:

1.

The appeals in ITA Nos. 2239,884, 885 & 2240/Del/2023 for AYs 2015-16, 2016-17, 2017-18 & 2020-21, arise out of the orders of the ld AO, DCIT, Circle International Tax-3(1)(1), New Delhi [hereinafter referred to as „ AO‟, in short] dated 29.08.2023 for AY 2015-16, 30.0

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