DIT v. Jacabs Civil Incorporated/ Mitsubhishi Corporation

Mgb Metro Group Buying Hk Ltd., New Delhi vs. DIT, New Delhi

In the result, appeal of the assessee in ITA

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)

…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…

DCIT, New Delhi vs. M/S. Mastercard Intl. Inc., Gurgaon

In the result, the Appeal filed by the Department stands

Bench: Shri H.S. Sidhu & Shri L.P. Sahu

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. No.5109/DEL/2015 A.Y. : 2006-07 DCIT, CIRCLE GURGAON, VS. M/S MASTERCARD INTERNATIONAL TAXATION, INTERNATIONAL INC. ROOM NO. 411, 4TH FLOOR, C/O AUTHORIZED BLOCK E-2 REPRESENTATIVE, CIVIC CENTRE, SRBC & ASSOCIATED LLP. NEW DELHI – 110 002 GOLF VIEW, CORPORATION TOWER B, 7TH FLOOR, SECTOR-42, SECTOR ROAD, GURGAON (HARYANA-122001) (PAN:AACCM7670F) (ASSESSEE) (RESPONDENT) Revenue by : Sh. Gaurav Dudeja, Sr. DR Assessee by : Sh. Sandeep Karhail, Adv. ORDER PER H.S. S…

DDIT, Dehradun vs. M/S. Tidewater Marine Internatioanl Inc., New Delhi

In the result, appeal of the Revenue is dismissed

Bench: Sh. Bhavnesh Saini & Sh. O.P. Kantassessment Year: 2011-12 Vs. M/S. Ddit, International Taxation, Tidewater Marine International Inc., 17Th Floor, Aayakar Bhawan, 13A-Subhash Road, Dehradun Jawahar Vyapar Bhawan, Tolstoys Marg, New Delhi Pan : Aaact7573Q (Appellant) (Respondent) Appellant By Sh. Gaurav Dudeja, Sr.Dr Respondent By Sh. Amit Arora, Ca Date Of Hearing 31.10.2017 Date Of Pronouncement 31.10.2017 Order Per O.P. Kant, A.M.:

…-Resident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deductor. b. 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 non- deduction 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 ITA No. 327 & Ors of 2012).…

DDIT, Dehradun vs. M/S. Almansoori Sperialized Engineering Co., Dehradun

In the result, appeal of the Revenue is allowed partly for statistical purpose

Bench: Sh. C.M. Garg & Sh. O.P. Kantassessment Year: 2010-11 Vs. Almansoori Ddit, International Taxation, Sperialized Dehradun Engineering Co., C/O- M/S. Nangia & Co., Cas 75/7, Raipur Road, Dehradun. Pan : Aaaca9529M (Appellant) (Respondent) Appellant By Sr. S.K. Jain, Sr.Dr Respondent By S/Sh. Amit Arora & Vishal Mishra, Cas Date Of Hearing 11.04.2017 Date Of Pronouncement 26.04.2017 Order Per O.P. Kant, A.M.: This Appeal By The Revenue Is Directed Against Order Dated 23/04/2014 Of Ld. Commissioner Of Income-Tax (Appeals)-Ii, Dehradun (In Short “The Cit-A”) For Assessment Year 2010-11, Raising Following Grounds Of Appeal:

…t asses see/pay ee/deductee has played a role in inducing non-deduction or short- deduction on the part of the payer/deductor. 6.2) The Ld. CIT (A) has erred in fail ing 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 non- deduction 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 3 the case of M/s. Alcatel Lucent (judgment of Delhi High Court dated 07.11.2013 in ITA No. 327 & Ors. of 20…

ADIT, Dehradun vs. M/S. Hampson Russell Ltd Partnership, Mumbai

In the result, the appeal of the Revenue is allowed partly for statistical purposes

Bench: Sh. H.S. Sidhu & Sh. O.P. Kant

…y interest under section 234B of the Act. 39. The Ld. counsel on the other hand submitted that issue in dispute & ITA No. 1225/Del/2012 is covered in the favour of the assessee by the decision of the Hon’ble Delhi High Court in the case of Jacobs civil(2011) 330 ITR 578(Delhi). 40. We have heard the rival submission and perused the relevant material on record. In the decision of the Jacobs Civil (supra), the Hon’ble High Court has held that if the assessee had no role in deducting or collecting the tax, the question of payment of interest would not arise, however, if there is a default in making advance tax, the…

ADIT Intl. Taxation, Dehradun vs. M/S. Hampson Russell Ltd. Partnership., Mumbai

In the result, the appeal of the Revenue is allowed partly for statistical purposes

Bench: Sh. H.S. Sidhu & Sh. O.P. Kant

…y interest under section 234B of the Act. 39. The Ld. counsel on the other hand submitted that issue in dispute & ITA No. 1225/Del/2012 is covered in the favour of the assessee by the decision of the Hon’ble Delhi High Court in the case of Jacobs civil(2011) 330 ITR 578(Delhi). 40. We have heard the rival submission and perused the relevant material on record. In the decision of the Jacobs Civil (supra), the Hon’ble High Court has held that if the assessee had no role in deducting or collecting the tax, the question of payment of interest would not arise, however, if there is a default in making advance tax, the…

DCIT, Dehradun vs. M/S. Baker Hughes Asia Pacific Ltd., Dehradun

In the result, the appeals of the department as well as Cross

Bench: Sh. N. K. Saini, Am & Ms. Suchitra Kamble, Jm Ita No. 6584/Del/2014 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs M/S Baker Hughes Asia Pacific Ltd., C/O-Nangia & Co., Cas, 3Rd Floor, Income Tax (International Taxation), Circle-1, Ncr Plaza, New Cantt. Road, Dehradun-248001 Dehradun-248001 (Appellant) (Respondent) Pan No. Aaccb3714F Co No. 216/Del/2015 : Asstt. Year : 2011-12 M/S Baker Hughes Asia Pacific Ltd., Vs Deputy Commissioner Of C/O-Nangia & Co., Cas, 3Rd Floor, Income Tax (International Ncr Plaza, New Cantt. Road, Taxation), Circle-1, Dehradun-248001 Dehradun-248001 (Appellant) (Respondent) Pan No. Aaccb3714F

…-resident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deductor. b. 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 non-deduction 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 ITA No. 327 & Ors of 2012).…

DCIT, Dehradun vs. M/S. Expro Gulf Ltd., Mumbai

In the result, the appeal of the Revenue is partly allowed for statistical

Bench: : Shri H.S. Sidhu & Shri L.P. Sahu

…resident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deductor. b. 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 non- deduction 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 ITA No. 327&Orsof2012).”…

Mol Corporation, Gurgaon vs. Addl. DIT, New Delhi

In the result appeal of the assessee for the assessment year

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

…st the Appellant. 3.9 Without prejudice to the above grounds, the Learned AO has erred in levying interest under section 234B of the Act which is not maintainable in law in view of the decision of jurisdictional High Court in the case of DIT vs. Jacabs Civil (330 ITR 578) and various other judicial precedents decided in favor of taxpayers on this issue. 38. It was submitted before us that the issue involved in the present appeal are identical to the appeal of the assessee for assessment year 2007 – 08. The mainly ground No. 3 and ground No. 4 of the above appeal are against the action of the Ld. Assessing officer…

DCIT, Dehradun vs. M/S. Halliburton Offshore Services Inc., Mumbai

In the result, the appeal of the Revenue and the cross-objection of the assessee both are dismissed

Bench: Shri G.D. Agrawalbefore Shri G.D. Agrawal & And Before Shri Before Shri G.D. Agrawalg.D. Agrawal & And Smt. Beena A. Pillai Smt. Beena A. Pillaismt. Beena A. Pillai Smt. Beena A. Pillai

…Resident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deductor. b. 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 non- deduction 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 7.11.2013 in ITA No.327 & Ors of 2012).”…

DCIT, Dehradun vs. M/S. Al Mansoori Specialized Engineering Co. Llc, Dehradun

In the result the appeal of the revenue and cross objection filed by the assessee are dismissed

Bench: Shri H.S.Sidhu & Shri Prashant Maharishidcit, Al Mansoori Specialized Engineering Co. Llc, Circle-1, International Taxation, C/O. M/S. Nangia & Co. Cas, 3Rd Floor, Ncr Plaza, New Cantt Road, Vs. Aayakar Bhawan, 13A-Subhash Road, Dehradun Dehradun Pan:Aaaca9529M (Appellant) (Respondent)

…esident assessee/payee/deductee has played a role in inducing non-deduction or short-deduction on the part of the payer/deductor. b. 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 non- deduction 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 7.11.2013 in ITA No. 327 & Ors of 2012).”…

M/S. Zte Corporation, Gurgaon vs. ADIT, New Delhi

In the result, this ground is

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

…75. Apropos ground no. 4, relating to levy of interest u/s 234B, ld. CIT(DR) submitted that ld. CIT(A) was not correct in withdrawing interest u/s 234B by relying on the decision of Hon’ble Delhi High Court in the case of DIT Vs. Jacobs Civil Incorporation 330 ITR 578. He submitted that levy of interest u/s 234B is mandatory in view of the decision of Hon’ble Supreme Court of in the case of CIT Vs. Anjum M. Ghaswala & others 252 ITR 1(SC). 76. Ld. DR pointed out that Hon’ble Delhi High court in the case of Jacobs (supra) has held that section 195 puts an obligation on the payer i.e. any person responsible…

DDIT, New Delhi vs. M/S Zte Corporation

In the result, this ground is

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

…75. Apropos ground no. 4, relating to levy of interest u/s 234B, ld. CIT(DR) submitted that ld. CIT(A) was not correct in withdrawing interest u/s 234B by relying on the decision of Hon’ble Delhi High Court in the case of DIT Vs. Jacobs Civil Incorporation 330 ITR 578. He submitted that levy of interest u/s 234B is mandatory in view of the decision of Hon’ble Supreme Court of in the case of CIT Vs. Anjum M. Ghaswala & others 252 ITR 1(SC). 76. Ld. DR pointed out that Hon’ble Delhi High court in the case of Jacobs (supra) has held that section 195 puts an obligation on the payer i.e. any person responsible…

Zte Corporation vs. ADIT, New Delhi

In the result, this ground is

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

…75. Apropos ground no. 4, relating to levy of interest u/s 234B, ld. CIT(DR) submitted that ld. CIT(A) was not correct in withdrawing interest u/s 234B by relying on the decision of Hon’ble Delhi High Court in the case of DIT Vs. Jacobs Civil Incorporation 330 ITR 578. He submitted that levy of interest u/s 234B is mandatory in view of the decision of Hon’ble Supreme Court of in the case of CIT Vs. Anjum M. Ghaswala & others 252 ITR 1(SC). 76. Ld. DR pointed out that Hon’ble Delhi High court in the case of Jacobs (supra) has held that section 195 puts an obligation on the payer i.e. any person responsible…

Zte Corporation vs. ADIT, New Delhi

In the result, this ground is

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

…75. Apropos ground no. 4, relating to levy of interest u/s 234B, ld. CIT(DR) submitted that ld. CIT(A) was not correct in withdrawing interest u/s 234B by relying on the decision of Hon’ble Delhi High Court in the case of DIT Vs. Jacobs Civil Incorporation 330 ITR 578. He submitted that levy of interest u/s 234B is mandatory in view of the decision of Hon’ble Supreme Court of in the case of CIT Vs. Anjum M. Ghaswala & others 252 ITR 1(SC). 76. Ld. DR pointed out that Hon’ble Delhi High court in the case of Jacobs (supra) has held that section 195 puts an obligation on the payer i.e. any person responsible…

Agence France Presse (Afp), New Delhi vs. DDIT, New Delhi

Bench: Shri N.K. Saini & Shri Kuldip Singh

…has relied upon case laws to contend that interest under these section sis not chargeable in its case.” 13. The coordinate Bench in the case cited as Kawasaki Heavy Industries Ltd. (supra) by relying upon the judgment cited as DIT vs. M/s Jacab Civil Inc. 330 ITR 578 (Delhi) – 330 ITR 578 (Del.) and DIT (International Taxation) vs. GE Packaged Power Inc. judgment dated 12.01.2015 in ITA 352/2014, decided the issue in favour of the assessee meaning thereby interest levied u/s 234B is not sustainable. This issue has also been determined in favour of the assessee by the Hon’ble jurisdictional High Court in…