CIT v. Madras Fertilisers Ltd.

149 ITR 703High Court1984#2072 most cited

What is CIT v. Madras Fertilisers Ltd. authority for?

Interest under Section 215 of the Income Tax Act is not leviable if tax was deductible at source but was not deducted by the payer. The liability for advance tax on interest income and the corresponding interest liability for non-payment arises only when the payer has failed to deduct tax at source.

55

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2010 to 2024.

Also referred to as

CIT v. Madras Fertilisers Ltd. · Section 215 · interest under section 215 · tax deductible at source · advance tax · interest income · payer not deducting tax · levy of interest not justified

Sections most often in play

Section 234BSection 234CSection 143(1)Section 143(3)Section 147Section 154Section 194LDSection 195

Issues it is cited on

advance taxsection 234bsection 234indiainterest

Judgments citing CIT v. Madras Fertilisers Ltd.

DDIT (It) 3(1), Mumbai vs. Hoyer Global Transport Bv, Mumbai

In the result, all the appeals of the Revenue are dismissed and the Cross

ITA 7556/MUM/2013[2009-10]Status: DisposedITAT Mumbai21 Sept 2016AY 2009-10

Bench: Shri Mahavir Singh & Shri Manoj Kumar Aggarwalddit (It) 3(1) Vs. Hoyer Global Transport Bv R.No. 136, 1St Floor C/O Samsara Shipping P. Ltd. Sc India House, N.M. Rd 101-102, Technopolis Knowledge Ballard Estate Park, Mahakali Caves Rd Mumbai - 400038 Chakala Andheri (E) Mumbai- 400093 Pan No. Aaach9241F Cross Objection No. 43/Mum/2015 (In Ita No. 7555/Mum/2013) In Assessment Year: 2002-03 Hoyer Global Transport Bv Vs. Ddit (It) 3(1) R.No. 136, 1St Floor, Sc India C/O Samsara Shipping P. Ltd. 101-102, Technopolis Knowledge House, N.M. Rd. Park, Mahakali Caves Rd. Ballard Estate Mumbai- 400093 Mumbai- 400038 &

For Appellant: Shri Girish Dave,ARFor Respondent: Shri Jasbir Chouhan, Sr. DR
Section 143(3)Section 144CSection 144C(3)

…irector of IT (International Taxation) vs. Morgan Guarantee International Finance Corporation, by applying the ratio of that judgment. Our attention is also invited to the judgment of the Madras High Court in the case of CIT vs. Madras Fertilisers Ltd. (1984) 149 ITR 703 (Mad), where the Madras High Court took the view that the amount of tax deductible at source is to be taken into consideration to determine the liability to pay the interest under s. 215. In that case, the assessee had not paid advance tax on interest income. The payer of interest had not deducted the tax. The learned Bench of the Madras High Cou…

DDIT (It) 3(1), Mumbai vs. Hoyer Global Transport Bv, Mumbai

In the result, all the appeals of the Revenue are dismissed and the Cross

ITA 7555/MUM/2013[2002-03]Status: DisposedITAT Mumbai21 Sept 2016AY 2002-03

Bench: Shri Mahavir Singh & Shri Manoj Kumar Aggarwalddit (It) 3(1) Vs. Hoyer Global Transport Bv R.No. 136, 1St Floor C/O Samsara Shipping P. Ltd. Sc India House, N.M. Rd 101-102, Technopolis Knowledge Ballard Estate Park, Mahakali Caves Rd Mumbai - 400038 Chakala Andheri (E) Mumbai- 400093 Pan No. Aaach9241F Cross Objection No. 43/Mum/2015 (In Ita No. 7555/Mum/2013) In Assessment Year: 2002-03 Hoyer Global Transport Bv Vs. Ddit (It) 3(1) R.No. 136, 1St Floor, Sc India C/O Samsara Shipping P. Ltd. 101-102, Technopolis Knowledge House, N.M. Rd. Park, Mahakali Caves Rd. Ballard Estate Mumbai- 400093 Mumbai- 400038 &

For Appellant: Shri Girish Dave,ARFor Respondent: Shri Jasbir Chouhan, Sr. DR
Section 143(3)Section 144CSection 144C(3)

…irector of IT (International Taxation) vs. Morgan Guarantee International Finance Corporation, by applying the ratio of that judgment. Our attention is also invited to the judgment of the Madras High Court in the case of CIT vs. Madras Fertilisers Ltd. (1984) 149 ITR 703 (Mad), where the Madras High Court took the view that the amount of tax deductible at source is to be taken into consideration to determine the liability to pay the interest under s. 215. In that case, the assessee had not paid advance tax on interest income. The payer of interest had not deducted the tax. The learned Bench of the Madras High Cou…

Meridien Sa, Mumbai vs. ADIT Cir 4(1), Mumbai

In the result, both the appeals of the assessee company are partly allowed

ITA 6605/MUM/2012[2009-10]Status: DisposedITAT Mumbai26 Aug 2016AY 2009-10

Bench: Shri G.S.Pannu & Shri Ravish Sood

For Appellant: Shri Neeraj AgarwalFor Respondent: Shri Harshad Vengurlekar
Section 143(3)Section 234BSection 66A

…ling Inc. Vs. DCIT [72 ITD 415 (Del)] (iii). CIT & Anr. Vs. Sedco Forex International Drilling Co. Ltd. & Ors [264 ITR 320(Uttaranchal)] 16 ITA No.6578 /MUM/2012,(A.Y. 2008-09) ITA No.6605 /MUM/2012,(A.Y. 200910 (iv). CIT Vs. Madras Fertilizers Ltd. [149 ITR 703](Mad) (v). CIT Vs. Ranoli Investments Pvt. Ltd. [235 ITR 433](Guj) The Ld. CIT(A) however being of the view that unlike as per the facts involved in the case laws relied upon before him, the assessee company had not offered its income for taxation following any recognized method of accounting, and rather as a matter of fact had understated its…

Meridien Sa, Mumbai vs. DDIT (It)Cir 4(1), Mumbai

In the result, both the appeals of the assessee company are partly allowed

ITA 6578/MUM/2012[2008-09]Status: DisposedITAT Mumbai26 Aug 2016AY 2008-09

Bench: Shri G.S.Pannu & Shri Ravish Sood

For Appellant: Shri Neeraj AgarwalFor Respondent: Shri Harshad Vengurlekar
Section 143(3)Section 234BSection 66A

…ling Inc. Vs. DCIT [72 ITD 415 (Del)] (iii). CIT & Anr. Vs. Sedco Forex International Drilling Co. Ltd. & Ors [264 ITR 320(Uttaranchal)] 16 ITA No.6578 /MUM/2012,(A.Y. 2008-09) ITA No.6605 /MUM/2012,(A.Y. 200910 (iv). CIT Vs. Madras Fertilizers Ltd. [149 ITR 703](Mad) (v). CIT Vs. Ranoli Investments Pvt. Ltd. [235 ITR 433](Guj) The Ld. CIT(A) however being of the view that unlike as per the facts involved in the case laws relied upon before him, the assessee company had not offered its income for taxation following any recognized method of accounting, and rather as a matter of fact had understated its…

Allcatel Usa Sourcing Lp ( Included in Alcatel-Lucent Usa Inc.), Mumbai vs. Addl DIT (It) RG 1, Mumbai

In the result, all the appeals filed by the assessees are allowed for statistical purpose

ITA 8601/MUM/2010[2006-07]Status: DisposedITAT Mumbai05 Aug 2016AY 2006-07

Bench: Shri B.R. Baskaran & Shri C.N. Prasadआयकर अपील सं /I.Ta No.8601 & 7533/Mum/2010 ("नधा"रण वष" / Assessment Year:2006-07 & 2007-08 M/S. Alcatel Usa Sourcing The Addl. Director Of बनाम/ Lp (Included In Alcatel- Income-Tax (International Vs. Lucent Usa Inc.) Taxation)-1, C/O Pricewaterhouse Scindia House, Coopers, Mumbai Pwc House, 4Th Floor, Guru Nanak Road, Bandra(W), Mumbai-400 050 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aalfa9998A आयकर अपील सं /I.Ta No.7534 & 7535/Mum/2011 ("नधा"रण वष" / Assessment Year:2007-08 & 2008-09 M/S. Alcatel Usa Sourcing The Addl. Director Of बनाम/ Inc (Included In Alcatel- Income-Tax (International Vs. Lucent Usa Inc.) Taxation)-1, C/O Pricewaterhouse Scindia House, Coopers, Mumbai Pwc House, 4Th Floor, Guru Nanak Road, Bandra(W), Mumbai-400 050 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aagca4535R .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Shri P.J. Pardiwalla अपीलाथ" ओर से/ Appellant By: Shri Madhur Agarwal Shri K.K. Ved ""यथ" क" ओर से/Respondent By: Shri Jasbir Chauhan

For Appellant: Shri Madhur AgarwalFor Respondent: Shri Jasbir Chauhan
Section 143(3)Section 144C(13)Section 234B

…313 ITR 187 (Bom) 46 M/s. Alcatel USA Sourcing LP 3) The DDIT Vs SET Satellite (Singapore) Pte Ltd., 106 ITD 175 (Mum) 4) Motorola Inc Vs DCIT 96 TTJ 1 (Del) 5) CIT Vs Ranoli Investment Pvt. Ltd and Other 235 ITR 433 (Guj) 6) CIT Vs Madras Fertilisers Ltd (`149 ITR 703 (Mad) 16.4. The DRP observing that provisions of Sec. 234B is compensatory in nature and is leviable on the amount of assessed tax therefore the contentions of the assessee was rejected. 16.5. On hearing both sides, we find force in the submissions of the Ld. Counsel for the assessee. However, we restore this issue to the file of the DRP to dec…

Rolls Royce Military Aero Engines Ltd vs. DDIT Int. Taxation Circle 2 (1)

In the result all the five appeals of the assessee are partly allowed

ITA 785/DEL/2008[2000-2001]Status: DisposedITAT Delhi29 Apr 2016AY 2000-2001

Bench: Shri H.S.Sidhu & Shri Prashant Maharishi

For Appellant: Sh. Mukesh Bhutani, AdvFor Respondent: Sh R.S. Negi, Sr. DR
Section 10Section 143(3)Section 147Section 148

…e was on the payer: i. DIT vs Jacabs Civil Incorporated / Mitsubishi Corporation [2011 ] 330 ITR 578 (Delhi) ii. DIT vs Ericsson A.B. [2012] 343 ITR 470 (Delhi) iii. DIT vs Ngc Network Asia LLC [2009] 222 CTR 85(BOM.) iv. CIT vs Madras Fertilisers Ltd. [1984] 149 ITR 703 (Madras) v. Sedco Forex International Drill Inc. vs CIT 264 ITR 320 (Utt.) 8. Ld. DR submitted that interest u/s 234B is mandatory and therefore it is to be charged on the assessee. 9. We have carefully considered the rival contentions. In fact in view of the decision of honourable Delhi high court in case of DIT V G E packaged Power inc. 56 tax…

Rolls Royce Military Aero Engines Ltd vs. DDIT Intl. Taxation Circle-2 (1)

In the result all the five appeals of the assessee are partly allowed

ITA 784/DEL/2008[1999-2000]Status: DisposedITAT Delhi29 Apr 2016AY 1999-2000

Bench: Shri H.S.Sidhu & Shri Prashant Maharishi

For Appellant: Sh. Mukesh Bhutani, AdvFor Respondent: Sh R.S. Negi, Sr. DR
Section 10Section 143(3)Section 147Section 148

…e was on the payer: i. DIT vs Jacabs Civil Incorporated / Mitsubishi Corporation [2011 ] 330 ITR 578 (Delhi) ii. DIT vs Ericsson A.B. [2012] 343 ITR 470 (Delhi) iii. DIT vs Ngc Network Asia LLC [2009] 222 CTR 85(BOM.) iv. CIT vs Madras Fertilisers Ltd. [1984] 149 ITR 703 (Madras) v. Sedco Forex International Drill Inc. vs CIT 264 ITR 320 (Utt.) 8. Ld. DR submitted that interest u/s 234B is mandatory and therefore it is to be charged on the assessee. 9. We have carefully considered the rival contentions. In fact in view of the decision of honourable Delhi high court in case of DIT V G E packaged Power inc. 56 tax…

Foster Wheeler France S.A., Chennai vs. DDIT, Chennai

In the result, both the appeals of the assessee are dismissed

ITA 641/CHNY/2015[2009-10]Status: DisposedITAT Chennai05 Feb 2016AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamonyआयकर अपील सं./Ita No.774/Mds/2014 "नधा"रण वष" / Assessment Year :2008-09 & आयकर अपील सं./Ita No.641/Mds/2015 "नधा"रण वष" / Assessment Year : 2009-10 Foster Wheeler France S.A., The Dy. Director Of Income-Tax, C/O Srbc & Associates Llp, V. International Taxation -1, Chennai 6Th & 7Th Floor, “A” Block, Tidel Park, Chennai - 600 034. No.4, Rajiv Gandhi Salai, Taramani, Chennai - 600 113. Pan : Aabcf 3849 C (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Sh. B. Ramakrishnan, C.AFor Respondent: Sh. Pathlavath Peerya, CIT
Section 195Section 40Section 9(1)(vii)

…x have to be deducted at source, there is no requirement to pay advance tax. Hence interest under Sections 234A and 234B cannot be levied. The Ld. representative placed his reliance on the judgment of Madras High Court in CIT v. Madras Fertilizers Limited (149 ITR 703). 7. On the contrary, Sh. Pathlavath Peerya, the Ld. Departmental Representative, submitted that “fee for technical service”is defined in Indian Income-tax Act and in Double Taxation Avoidance Agreement between India and USA. The assessee can 8 I.T.A. No.774/Mds/14 I.T.A. No.641/Mds/15 take advantage of Double Taxation Avoidance Agreement in…

Foster Wheeler France S.A., Chennai vs. DDIT, Chennai

In the result, both the appeals of the assessee are dismissed

ITA 774/CHNY/2014[2008-09]Status: DisposedITAT Chennai05 Feb 2016AY 2008-09

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamonyआयकर अपील सं./Ita No.774/Mds/2014 "नधा"रण वष" / Assessment Year :2008-09 & आयकर अपील सं./Ita No.641/Mds/2015 "नधा"रण वष" / Assessment Year : 2009-10 Foster Wheeler France S.A., The Dy. Director Of Income-Tax, C/O Srbc & Associates Llp, V. International Taxation -1, Chennai 6Th & 7Th Floor, “A” Block, Tidel Park, Chennai - 600 034. No.4, Rajiv Gandhi Salai, Taramani, Chennai - 600 113. Pan : Aabcf 3849 C (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Sh. B. Ramakrishnan, C.AFor Respondent: Sh. Pathlavath Peerya, CIT
Section 195Section 40Section 9(1)(vii)

…x have to be deducted at source, there is no requirement to pay advance tax. Hence interest under Sections 234A and 234B cannot be levied. The Ld. representative placed his reliance on the judgment of Madras High Court in CIT v. Madras Fertilizers Limited (149 ITR 703). 7. On the contrary, Sh. Pathlavath Peerya, the Ld. Departmental Representative, submitted that “fee for technical service”is defined in Indian Income-tax Act and in Double Taxation Avoidance Agreement between India and USA. The assessee can 8 I.T.A. No.774/Mds/14 I.T.A. No.641/Mds/15 take advantage of Double Taxation Avoidance Agreement in…

ADIT, Dehradun vs. M/S. Hallin Marine Uk Ltd., Dehradun

In the result, both the appeal and the cross objection filed by the assessee are dismissed and the appeal filed by the Revenue is allowed partly for statistical purposes

ITA 5290/DEL/2012[2009-10]Status: DisposedITAT Delhi20 Jan 2016AY 2009-10

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2009-10 M/S. Hallin Marine Uk Ltd., Vs. Adit, Intl. Taxation, Dehradun C/O Nangia & Company, Suite 4A, Plaza M-6, Jasola, New Delhi (Pan: Aabch9433L) (Appellant) (Respondent)

Section 143(2)Section 143(3)Section 44BSection 9(1)(vii)Section 92

…the case of Director of IT (International Taxation) vs. NGC Network Asia LLC (2009) 222 CTR (Bom) 86 : (2009) 18 DTR (Bom) 203. The Bombay High Court also took note of the judgment of the Madras High Court in the case of CIT vs. Madras Fertilisers Ltd. (1984) 149 ITR 703 (Mad) which had taken a similar view. The following observations of the Madras High Court are also worth quoting : "..If the TDS has not been deducted and paid over to the Department, then the banks whose duty it is to make deduction can be treated as the assessee in default under the provisions of s. 201 of the Act. Interest also can be collecte…

Hallin Marine Uk Ltd., New Delhi vs. ADIT, Dehradun

In the result, both the appeal and the cross objection filed by the assessee are dismissed and the appeal filed by the Revenue is allowed partly for statistical purposes

ITA 5217/DEL/2012[2009-10]Status: DisposedITAT Delhi20 Jan 2016AY 2009-10

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2009-10 M/S. Hallin Marine Uk Ltd., Vs. Adit, Intl. Taxation, Dehradun C/O Nangia & Company, Suite 4A, Plaza M-6, Jasola, New Delhi (Pan: Aabch9433L) (Appellant) (Respondent)

Section 143(2)Section 143(3)Section 44BSection 9(1)(vii)Section 92

…the case of Director of IT (International Taxation) vs. NGC Network Asia LLC (2009) 222 CTR (Bom) 86 : (2009) 18 DTR (Bom) 203. The Bombay High Court also took note of the judgment of the Madras High Court in the case of CIT vs. Madras Fertilisers Ltd. (1984) 149 ITR 703 (Mad) which had taken a similar view. The following observations of the Madras High Court are also worth quoting : "..If the TDS has not been deducted and paid over to the Department, then the banks whose duty it is to make deduction can be treated as the assessee in default under the provisions of s. 201 of the Act. Interest also can be collecte…

Director of Income Tax International Taxation vs. Ge Packaged Power Inc

ITA/352/2014HC Delhi12 Jan 2015

…o whether its income was taxable in India, at the appellate stage. There being no admission here of tax liability, it is argued that the obligation rests upon the payer to deduct tax at source. Reliance was also placed on CIT v. Madras Fertilizers Ltd. [1984] 149 ITR 703 (Mad.); DIT (Int. Taxation) v. NGC Network Asia LLC 313 ITR 187 (Bom.); Sedco Forex International Drilling Inc. v. DCIT 264 ITR 320 (Utt.); Motorola Inc. v. DIT 95 ITR 269 (Delhi SB) and Qualcomm Inc. v. ADIT, 153 TTJ 513 (Del.), for this proposition. 7. The question that arises for consideration is whether interest should be levied on the assess…

Director of Income Tax vs. Jacabs Civil Inc

Appeals of the Department are dismissed

ITA/491/2008HC Delhi30 Aug 2010

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MS. JUSTICE REVA KHETRAPAL

Section 234B

…of Income Tax (International Taxation) vs. NGC Network Asia LLC 222CTR (Bom) 86. The Bombay High Court also took note of the judgment of the Madras High Court in the case of Commissioner of Income Tax, Tamil Nadu-I, Madras vs. Madras Fertilizers Ltd. 149 ITR 703 which had taken a similar view. The following observations of the Madras High Court are also worth quoting: - “……If the tax deductible at source has not been deducted and paid over to the Department, then the banks whose duty it is to make deduction can be treated as the assessee in default under the provisions of s. 201 of the Act. Inter…

Director of Income Tax vs. Mitsubishi Corporation

Appeals of the Department are dismissed

ITA - 297 / 2010HC Delhi30 Aug 2010
Section 143(2)Section 234B

…or of Income Tax (International Taxation)</u> vs. NGC Network Asia LLC 222CTR (Bom) 86. The Bombay High Court also took note of the judgment of the Madras High Court in the case of Commissioner of Income Tax, Tamil Nadu-I, Madras vs. Madras Fertilizers Ltd. 149 ITR 703 which had taken a similar view. The following observations of the Madras High Court are also worth quoting: - ".....If the tax deductible at source has not been deducted and paid over to the Department, then the banks whose duty it is to make deduction can be treated as the assessee in default under the provisions of s. 201 of the Act. Interest…

Director of Income Tax vs. Jacabs Civil Inc

Appeals of the Department are dismissed

ITA - 491 / 2008HC Delhi30 Aug 2010
Section 143(2)Section 234B

…of Income Tax (International Taxation) vs. NGC Network Asia LLC 222CTR (Bom) 86. The Bombay High Court also took note of the judgment of the Madras High Court in the case of Commissioner of Income Tax, Tamil Nadu-I, Madras vs. Madras Fertilizers Ltd. 149 ITR 703 which had taken a similar view. The following observations of the Madras High Court are also worth quoting: - “……If the tax deductible at source has not been deducted and paid over to the Department, then the banks whose duty it is to make deduction can be treated as the assessee in default under the provisions of s. 201 of the Act. Inter…