DIT v. Jacabs Civil Incorporated/ Mitsubhishi Corporation

330 ITR 578High Court2011#922 most cited

What is DIT v. Jacabs Civil Incorporated/ Mitsubhishi Corporation authority for?

Interest under Section 234B is generally not leviable on non-residents whose income is subject to tax deduction at source under Section 195, provided the non-resident assessee did not induce short or non-deduction of TDS by the payer.

115

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2012 to 2025.

Also referred to as

DIT v. Jacabs Civil Incorporated · DIT v. Mitsubishi Corporation · 330 ITR 578 · Section 234B interest non-resident · Advance tax non-resident · Tax deductible at source Section 195 · Assessee role short deduction TDS · Non-liability interest Section 234B · Section 154 mistake apparent record · Rectification interest levy · Permanent establishment advance tax · Interest under section 234B

Sections most often in play

Section 147Section 148Section 154Section 195Section 207Section 208Section 209Section 210

Issues it is cited on

section 209(1)section 209section 195(1)section 195(2)section 260interest u/s 234bsection 260asection 40(a)(i)interest under section 234bsection 195permanent establishmentadvance tax

Judgments citing DIT v. Jacabs Civil Incorporated/ Mitsubhishi Corporation

Sumitomo Corporation, New Delhi vs. DCIT, New Delhi

Appeal are allowed

ITA 1114/DEL/2015[2010-11]Status: DisposedITAT Delhi01 Jul 2019AY 2010-11

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 234B

…Ld CIT(Appeals) has erred in holding that the assessee is not liable to pay interest u/s 234B of the Act and in observing that the issue is covered in favour of the assessee by decision in the case of M/s Jacabs Civil Incorporated, Mistubishi Corpn & Others [330 ITR 578, Delhi. 4.1. The Ld CIT (Appeals) has erred in not appreciating the fact the case does not lay down a general proposition of law that interest u/s 234B is not chargeable in all cases, particularly in cases where the Non-Resident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deducto…

DDIT, New Delhi vs. M/S. Sumitomo Corporation, New Delhi

Appeal are allowed

ITA 3714/DEL/2014[2004-05]Status: DisposedITAT Delhi01 Jul 2019AY 2004-05

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 234B

…Ld CIT(Appeals) has erred in holding that the assessee is not liable to pay interest u/s 234B of the Act and in observing that the issue is covered in favour of the assessee by decision in the case of M/s Jacabs Civil Incorporated, Mistubishi Corpn & Others [330 ITR 578, Delhi. 4.1. The Ld CIT (Appeals) has erred in not appreciating the fact the case does not lay down a general proposition of law that interest u/s 234B is not chargeable in all cases, particularly in cases where the Non-Resident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deducto…

DDIT, New Delhi vs. M/S. Sumitomo Corporation, New Delhi

Appeal are allowed

ITA 3713/DEL/2014[2003-04]Status: DisposedITAT Delhi01 Jul 2019AY 2003-04

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 234B

…Ld CIT(Appeals) has erred in holding that the assessee is not liable to pay interest u/s 234B of the Act and in observing that the issue is covered in favour of the assessee by decision in the case of M/s Jacabs Civil Incorporated, Mistubishi Corpn & Others [330 ITR 578, Delhi. 4.1. The Ld CIT (Appeals) has erred in not appreciating the fact the case does not lay down a general proposition of law that interest u/s 234B is not chargeable in all cases, particularly in cases where the Non-Resident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deducto…

DDIT, New Delhi vs. M/S. Sumitomo Corporation, New Delhi

Appeal are allowed

ITA 3696/DEL/2014[2002-03]Status: DisposedITAT Delhi01 Jul 2019AY 2002-03

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 234B

…Ld CIT(Appeals) has erred in holding that the assessee is not liable to pay interest u/s 234B of the Act and in observing that the issue is covered in favour of the assessee by decision in the case of M/s Jacabs Civil Incorporated, Mistubishi Corpn & Others [330 ITR 578, Delhi. 4.1. The Ld CIT (Appeals) has erred in not appreciating the fact the case does not lay down a general proposition of law that interest u/s 234B is not chargeable in all cases, particularly in cases where the Non-Resident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deducto…

DDIT, New Delhi vs. M/S. Sumitomo Corporation, New Delhi

Appeal are allowed

ITA 3695/DEL/2014[2001-02]Status: DisposedITAT Delhi01 Jul 2019AY 2001-02

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 234B

…Ld CIT(Appeals) has erred in holding that the assessee is not liable to pay interest u/s 234B of the Act and in observing that the issue is covered in favour of the assessee by decision in the case of M/s Jacabs Civil Incorporated, Mistubishi Corpn & Others [330 ITR 578, Delhi. 4.1. The Ld CIT (Appeals) has erred in not appreciating the fact the case does not lay down a general proposition of law that interest u/s 234B is not chargeable in all cases, particularly in cases where the Non-Resident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deducto…

Sumitomo Corporation, Delhi vs. DDIT, New Delhi

Appeal are allowed

ITA 3677/DEL/2014[2003-04]Status: DisposedITAT Delhi01 Jul 2019AY 2003-04

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 234B

…Ld CIT(Appeals) has erred in holding that the assessee is not liable to pay interest u/s 234B of the Act and in observing that the issue is covered in favour of the assessee by decision in the case of M/s Jacabs Civil Incorporated, Mistubishi Corpn & Others [330 ITR 578, Delhi. 4.1. The Ld CIT (Appeals) has erred in not appreciating the fact the case does not lay down a general proposition of law that interest u/s 234B is not chargeable in all cases, particularly in cases where the Non-Resident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deducto…

Sumitomo Corporation, Delhi vs. DDIT, New Delhi

Appeal are allowed

ITA 3676/DEL/2014[2002-03]Status: DisposedITAT Delhi01 Jul 2019AY 2002-03

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 234B

…Ld CIT(Appeals) has erred in holding that the assessee is not liable to pay interest u/s 234B of the Act and in observing that the issue is covered in favour of the assessee by decision in the case of M/s Jacabs Civil Incorporated, Mistubishi Corpn & Others [330 ITR 578, Delhi. 4.1. The Ld CIT (Appeals) has erred in not appreciating the fact the case does not lay down a general proposition of law that interest u/s 234B is not chargeable in all cases, particularly in cases where the Non-Resident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deducto…

Sumitomo Corporation, New Delhi vs. DDIT, New Delhi

Appeal are allowed

ITA 3675/DEL/2014[2001-02]Status: DisposedITAT Delhi01 Jul 2019AY 2001-02

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 234B

…Ld CIT(Appeals) has erred in holding that the assessee is not liable to pay interest u/s 234B of the Act and in observing that the issue is covered in favour of the assessee by decision in the case of M/s Jacabs Civil Incorporated, Mistubishi Corpn & Others [330 ITR 578, Delhi. 4.1. The Ld CIT (Appeals) has erred in not appreciating the fact the case does not lay down a general proposition of law that interest u/s 234B is not chargeable in all cases, particularly in cases where the Non-Resident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deducto…

DDIT, Dehradun vs. M/S. Rolv Berg Drive As, Mumbai

Appeal is dismissed

ITA 4621/DEL/2014[2010-11]Status: DisposedITAT Delhi18 Jun 2019AY 2010-11

Bench: Shri R. K. Panda & Ms Suchitra Kambleddit Vs Rolv Berg Drive As International Taxation C/O. M/S. Anil Khanna & Associates, Dehradun C. As, 307, Oberoi Splendor, Tower-C, Jogeshwari Vikhroli Link Road (Jvlr), (Appellant) Opp. Majas Bas Depot, Andheri (E) Mumbai Aaccr6772K (Respondent)

Section 234Section 448Section 44B

…1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘F’ NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER DDIT Vs Rolv Berg Drive AS International Taxation C/o. M/s. Anil Khanna & Associates, Dehradun C. As, 307, Oberoi Splendor, Tower-C, Jogeshwari Vikhroli Link Road (JVLR), (APPELLANT) Opp. Majas Bas Depot, Andheri (E) Mumbai AACCR6772K (RESPONDENT) Appellant by Sh. Surender Pal, Sr. DR Respondent by Sh. Salil Kapoor, Sidharth Kr. & Ms. Pallavi, Advs. Date of Hearing 22.05.2019 Date of Pronouncement 18.06.2019 ORDER PER SUCHITRA KAMBLE, JM This appeal is fil…

Microsoft Corporation vs. ADIT Circle-3 (1)

In the result, appeals of the assessee are allowed

ITA 1330/DEL/2008[1999-2000]Status: DisposedITAT Delhi13 May 2019AY 1999-2000

Bench: Shri G.D. Agarwal & Shri K.Narasimha Chary

For Appellant: S/Shri Nageshwar RaoFor Respondent: Shri G.K. Dhall, CIT-DR
Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘B’ NEW DELHI BEFORE SHRI G.D. AGARWAL, VICE PRESIDENT & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER ITA Nos.1328 to 1330/Del/2008 Assessment Years: 1997-98 to 1999- 2000 M/s Microsoft Corporation, Vs Asstt. Director of Income-tax, C/o SR Batliboi& Co. Circle 3(1), International Taxation, 8th Floor, Golf View Corporate New Delhi. Tower B, Sector -42,Gurgaon. Assessee by: S/Shri Nageshwar Rao & Sandeep S. Karhail, Advocate Revenue by: Shri G.K. Dhall, CIT-DR Date of Hearing 01.05.2019 Date of Pronouncement 13.05.2019 ORDER PER K. NARASIMHA CHARY, JM Aggrieved by the C…

Microsoft Corporation vs. ADIT Circle-3 (1)

In the result, appeals of the assessee are allowed

ITA 1329/DEL/2008[1998-1999]Status: DisposedITAT Delhi13 May 2019AY 1998-1999

Bench: Shri G.D. Agarwal & Shri K.Narasimha Chary

For Appellant: S/Shri Nageshwar RaoFor Respondent: Shri G.K. Dhall, CIT-DR
Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘B’ NEW DELHI BEFORE SHRI G.D. AGARWAL, VICE PRESIDENT & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER ITA Nos.1328 to 1330/Del/2008 Assessment Years: 1997-98 to 1999- 2000 M/s Microsoft Corporation, Vs Asstt. Director of Income-tax, C/o SR Batliboi& Co. Circle 3(1), International Taxation, 8th Floor, Golf View Corporate New Delhi. Tower B, Sector -42,Gurgaon. Assessee by: S/Shri Nageshwar Rao & Sandeep S. Karhail, Advocate Revenue by: Shri G.K. Dhall, CIT-DR Date of Hearing 01.05.2019 Date of Pronouncement 13.05.2019 ORDER PER K. NARASIMHA CHARY, JM Aggrieved by the C…

Microsoft Corporation vs. ADIT Circle-3 (1)

In the result, appeals of the assessee are allowed

ITA 1328/DEL/2008[1997-1998]Status: DisposedITAT Delhi13 May 2019AY 1997-1998

Bench: Shri G.D. Agarwal & Shri K.Narasimha Chary

For Appellant: S/Shri Nageshwar RaoFor Respondent: Shri G.K. Dhall, CIT-DR
Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘B’ NEW DELHI BEFORE SHRI G.D. AGARWAL, VICE PRESIDENT & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER ITA Nos.1328 to 1330/Del/2008 Assessment Years: 1997-98 to 1999- 2000 M/s Microsoft Corporation, Vs Asstt. Director of Income-tax, C/o SR Batliboi& Co. Circle 3(1), International Taxation, 8th Floor, Golf View Corporate New Delhi. Tower B, Sector -42,Gurgaon. Assessee by: S/Shri Nageshwar Rao & Sandeep S. Karhail, Advocate Revenue by: Shri G.K. Dhall, CIT-DR Date of Hearing 01.05.2019 Date of Pronouncement 13.05.2019 ORDER PER K. NARASIMHA CHARY, JM Aggrieved by the C…

JCIT (International Taxation), Dehradun vs. M/S. R & B Falcon (A) Pty Ltd., Mumbai

In the result, all these appeals of the Revenue are dismissed

ITA 708/DEL/2016[2011-12]Status: DisposedITAT Delhi10 May 2019AY 2011-12

Bench: : Shri Amit Shukla & Shri L.P. Sahuassessment Year: 2011-12

Section 143(3)Section 144CSection 44B

…in inducing non-deduction or short-deduction on the part of the payer / deductor. ITA Nos.708, 710, 711, 713 & 714/Del/2016 6 2.2 The Ld. CIT(A) has erred in failing to take note of the observations of the Hon’ble High Court in the case of M/s Mitsubishi [330 ITR 578, Del] that the role of the assessee/payee/deductee in short-deduction or nondeduction of tax needs to be ascertained before claim regarding non-liability to interest u/s 234B of the Act is accepted, a proposition affirmed subsequently in the case of M/s Alcatel Lucent (judgment of Delhi High Court dated 07.11.2013 in Income Tax Act, 1961 No. 327…

DCIT, Dehradun vs. M/S. Reed Hycalog Limited Partnership, Noida

In the result, the appeal of the Revenue is dismissed and the cross- objection of the assessee is partly allowed

ITA 6985/DEL/2014[2006-07]Status: DisposedITAT Delhi12 Apr 2019AY 2006-07

Bench: : Shri Amit Shukla & Shri L.P. Sahuassessment Year: 2006-07

Section 126Section 147Section 148Section 234BSection 234C

…(d) of the Act. Hence, in the absence of any liability for payment of advance tax, the provisions of section 234B and 234C of the Act would not be applicable in appellant's case. Judicial Pronouncements DIT v. Jacabs Civil Incorporated/Mitsubishi Corporation (330 ITR 578) (Hon’ble Jurisdictional Delhi HC) The Hon’ble Delhi HC relying on the decision of Hon’ble Uttaranchal HC in the case of CIT v. Sedco Forex International Drilling Co. Ltd (264 ITR 320) and Hon'ble Bombay HC 8 in the case of DIT v. NGC Network Asia LLC (222 CTR 85) has held in para 8 of the decision as under: This clause categorically uses the ex…

DDIT, Dehradun vs. M/S. Ongc As Representative Assessee of M/S. Cameron Singapore Pte Ltd., Singapore, Dehradun

In the result, the appeal filed by the revenue is dismissed

ITA 6169/DEL/2014[2010-11]Status: DisposedITAT Delhi11 Feb 2019AY 2010-11

Bench: Smt. Diva Singh & Sh. R.K Pandaassessment Year: 2010-11 Ddit Ongc As Representative International Taxation Vs Assessee Of M/S. Cameron Aayakar Bhawan, 13A- Singapore Pte. Ltd. Co., Tel Subhash Road, Dehradun – Bhawan, Dehradun 248001 (Appellant) (Respondent)

Section 143Section 44BSection 9Section 9(1)(vii)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND SH. R.K PANDA, ACCOUNTANT MEMBER Assessment Year: 2010-11 DDIT ONGC as Representative International Taxation Vs Assessee of M/s. Cameron Aayakar Bhawan, 13A- Singapore Pte. Ltd. Co., Tel Subhash Road, Dehradun – Bhawan, Dehradun 248001 (APPELLANT) (RESPONDENT) Appellant by Sh. Rinku Singh, Sr. DR Respondent by Sh. Gaurav Jain, Advocate Ms. Manisha Sharma, Advocate Date of hearing: 03/01/2019 Date of Pronouncement: /01/2019 ORDER PER R.K. PANDA, AM: 1. This appeal filed by the revenue is directed a…

DDIT, New Delhi vs. M/S. Western Union Financial Services Inc., Gurgaon

ITA 4532/DEL/2015[2011-12]Status: DisposedITAT Delhi28 Sept 2018AY 2011-12

Bench: Shri N.K. Saini & Shri Sudhanshu Srivastavaassessment Year: 2011-12 Deputy Director Of Income Tax, M/S Western Union Circle 3(1)(1), Financial Services Inc., International Taxation, C/O Kpmg, Building No. New Delhi. Vs 10, 8Th Floor, Tower-B, Dlf Cyber City, Phase-Ii, Gurgaon-122002

For Appellant: Shri S.S. Rana, C.I.T. DRFor Respondent: Shri Tarandeep Singh, CA
Section 9

…s and in the circumstances of the case and in law, the Ld. CIT (Appeals) has erred in holding that the assessee is not liable to pay interest u/s 234B of the Act, completely overlooking the observations of the Hon’ble High Court in the case of M/s Mitsubishi [330 ITR 578, Del] that the role of the assessee/payee/deductee in short- deduction or non-deduction of tax needs to be ascertained before claim regarding non-liability to interest u/s 234B of the Act is accepted.” 4. The Ld. DR heavily placed reliance on the assessment order passed by the AO. 5. The Ld. AR placed reliance on the decision of this Tribunal…

Sh. Harpal Singh, Chandigarh vs. Dy. Director of Income Tax, Chandigarh

The appeal is dismissed

ITA 37/CHANDI/2016[2010-11]Status: DisposedITAT Chandigarh08 Aug 2018AY 2010-11

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2010-11

For Appellant: Shri. Tej Mohan SinghFor Respondent: Smt. Chandrakanta
Section 194ASection 201Section 201(1)(A)

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’A’, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER Assessment Year: 2010-11 Sh. Harpal Singh, Vs. The DCIT H.No. 205, Sector-36A (International Taxation) Chandigarh Chandigarh PAN No. AASPA8704D (Appellant) (Respondent) Assessee By : Shri. Tej Mohan Singh Revenue By : Smt. Chandrakanta Date of hearing : 24/07/2018 Date of Pronouncement : 08/08/2018 ORDER PER DR. B.R.R. KUMAR, A.M: The present Appeal has been filed by the Assessee against the order of the Ld. CIT(A)-43, New Delhi dt. 30/12/2015. 2. In the present…

DCIT, New Delhi vs. M/S. Cargill International Trading Pte. Ltd., Singapore

In the result, the appeal of the Revenue is dismissed

ITA 3415/DEL/2015[2009-10]Status: DisposedITAT Delhi21 Jun 2018AY 2009-10

Bench: : Shri H.S. Sidhu & Shri L.P. Sahuassessment Year: 2009-10

Section 115ASection 234BSection 91(7)

…In the Income-Tax Appellate Tribunal, Delhi Bench ‘F’, New Delhi Before : Shri H.S. Sidhu, Judicial Member And Shri L.P. Sahu, Accountant Member Assessment Year: 2009-10 DCIT Circle 1(1)(1), vs. Cargill International Trading Pte Ltd., Intl. Taxation, New Delhi 300 Beach Road, 23-01, The Concourse Singapore (PAN- AACCC4644D) (Appellant) (Respondent) Appellant by Sh. Surender Pal, Sr. DR Respondent by None Date of Hearing 19.06.2018 Date of Pronouncement 21.06.2018 ORDER Per L.P. Sahu, A.M.: This is an appeal filed by the Revenue against the order of the ld. CIT(A)-42, New Delhi dated 30.03.2015 for the as…

Mgb Metro Group Buying Hk Ltd- India Liasion Office, New Delhi vs. DDIT, New Delhi

In the result, appeal of the assessee in ITA

ITA 1473/DEL/2012[2008-09]Status: DisposedITAT Delhi31 May 2018AY 2008-09

Bench: Sh. Bhavnesh Saini & Sh. O.P. Kantassessment Year: 2001-02 M/S. Parpool Ltd., Vs. Adit, C/O- Mgb Metro Group International Taxation, Buying Hk Ltd. - India Circle -1(2), New Delhi Liaison Office, 40, Okhla Industrial Estate, Phase-Iii, New Delhi Pan :Aaecm3289J (Appellant) (Respondent) & Ita Nos.4911/Del/2010 & 1473/Del/2012 Assessment Years: 2007-08 & 2008-09 M/S. Mgb Metro Group Vs. Dit, Buying Hk Ltd., Circle-3(1), International India Liaison Officer, 40, Taxation, Drum Shape Okhla Industrial Estate, Building, New Delhi Phase-Iii, New Delhi Pan :Aaecm3289J (Appellant) (Respondent)

Section 234BSection 5Section 9

…adjudicating and deleting levy of interest under section 234B of the Act which is covered in favour of the appellant by the judgment of the Hon’ble jurisdictional Delhi High Court in the case of DIT Vs Jacobs Civil Incorporated, Mitsubishi Corporation and Ors 330 ITR 578 (Del) and DIT Vs Ericsson AB, Ericsson Radio System AB, Metapath Software International Ltd 246 CTR 422 (Del). 5 The appellant prays for leave to add, alter, rescind from or withdraw any of the above grounds of appeal at or before the time of hearing of the appeal. 3. The grounds raised in ITA No. 4911/Del/2010 are also being more or less simila…

Parpool Ltd., New Delhi vs. ADIT, New Delhi

In the result, appeal of the assessee in ITA

ITA 1472/DEL/2012[2001-02]Status: DisposedITAT Delhi31 May 2018AY 2001-02

Bench: Sh. Bhavnesh Saini & Sh. O.P. Kantassessment Year: 2001-02 M/S. Parpool Ltd., Vs. Adit, C/O- Mgb Metro Group International Taxation, Buying Hk Ltd. - India Circle -1(2), New Delhi Liaison Office, 40, Okhla Industrial Estate, Phase-Iii, New Delhi Pan :Aaecm3289J (Appellant) (Respondent) & Ita Nos.4911/Del/2010 & 1473/Del/2012 Assessment Years: 2007-08 & 2008-09 M/S. Mgb Metro Group Vs. Dit, Buying Hk Ltd., Circle-3(1), International India Liaison Officer, 40, Taxation, Drum Shape Okhla Industrial Estate, Building, New Delhi Phase-Iii, New Delhi Pan :Aaecm3289J (Appellant) (Respondent)

Section 234BSection 5Section 9

…adjudicating and deleting levy of interest under section 234B of the Act which is covered in favour of the appellant by the judgment of the Hon’ble jurisdictional Delhi High Court in the case of DIT Vs Jacobs Civil Incorporated, Mitsubishi Corporation and Ors 330 ITR 578 (Del) and DIT Vs Ericsson AB, Ericsson Radio System AB, Metapath Software International Ltd 246 CTR 422 (Del). 5 The appellant prays for leave to add, alter, rescind from or withdraw any of the above grounds of appeal at or before the time of hearing of the appeal. 3. The grounds raised in ITA No. 4911/Del/2010 are also being more or less simila…