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

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

In the result, the appeal of the Department is partly allowed

ITA 1048/DEL/2014[2010-11]Status: DisposedITAT Delhi29 Apr 2016AY 2010-11

Bench: Shri N.K. Saini & Shri Sudhanshu Srivastavaay: 2010-11 Adit Vs R & B Falcon (A) Pty Ltd., International Taxation, 1St Floor, Spectra High Street, Aayakar Bhawan, Hiranandani Business Park, 13A-Subhash Road, Powai, Mumbai. Dehraun. (Pan: Aaccr5345Q) (Appellant) (Respondent) Appellant By: Shri Anuj Arora, Cit Dr Respondent By: Shri Amit Arora, Ca Date Of Hearing: 08.02.2016 Date Of Pronouncement: 29.04.2016

For Appellant: Shri Anuj Arora, CIT DRFor Respondent: Shri Amit Arora, CA
Section 234BSection 44B

…nducing non-deduction or short-deduction on the part of the payer / deductor. 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 I.T.A. No. 1048/Del/2014 Assessment Year 2010-11 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 Income Tax Act, 1961 No. 32…

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

…ollowing decision, where interest under section 234B has been deleted, observing that the payments in question were tax deductible and the liability to deduct tax at source 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 asse…

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

…ollowing decision, where interest under section 234B has been deleted, observing that the payments in question were tax deductible and the liability to deduct tax at source 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 asse…

DDIT, New Delhi vs. M/S Scorpion Courageous Ltd., New Delhi

In the result, the Cross Objection of the assessee is partly allowed

ITA 4619/DEL/2012[2008-09]Status: DisposedITAT Delhi25 Apr 2016AY 2008-09
Section 143(2)Section 234BSection 44BSection 44DSection 9

…als) of interest charged under section 234B of the Act by the AO. 7.1 The Ld. CIT(DR) submitted that the learned Commissioner of Income- tax(Appeals), has followed the judgment of the Hon’ble Delhi High Court in the case of DCIT Vs. Jacobs Civil Incorporated, 330 ITR 578 (Del), however in subsequent judgment of the Hon’ble Delhi High Court in the case of Director of Income Tax Vs. Alcatel Lucent USA, Inc reported in (2014) 45 taxmann.com 422 (Delhi), it has been held that if the assessee is having role in non-deduction of tax at source by the deductor, then interest under section 234B is chargeable. He referred t…

M/S. Samsung Heavy Industries Co. Ltd., Gurgaon vs. JCIT, Dehradun

In the result, appeal of the assessee is allowed for statistical purposes

ITA 1978/DEL/2015[2011-12]Status: DisposedITAT Delhi28 Mar 2016AY 2011-12

Bench: Sh. N. K. Saini, Am & Sh. A. T. Varkey, Jm Ita No. 1978/Del/2015 : Asstt. Year : 2011-12 M/S Samsung Heavy Industries Vs Joint Commissioner Of Income Tax Co. Ltd., C/O Price Water House (International Taxation), Coopers Pvt. Ltd., 17Th Floor, Dehradun Building 10, Tower C, Dlf, Cyber City, Gurgaon, Haryana-122002 (Appellant) (Respondent) Pan No. Aajcs7859K Assessee By : Sh. Pawan Kumar, Adv., Ms. Pooja Khanna & Sanjam Goel, Cas Revenue By : Sh. Anuj Arora, Cit Dr Date Of Hearing : 07.01.2016 Date Of Pronouncement : 28.03.2016 Order Per N. K. Saini, Am:

For Appellant: Sh. Pawan Kumar, Adv., Ms. PoojaFor Respondent: Sh. Anuj Arora, CIT DR
Section 143(1)Section 194CSection 234BSection 234CSection 271(1)(c)Section 40

…The contention of the ld. Counsel for the assessee was that no interest was chargeable u/s 234B, since the assessee is non- residents. The reliance was placed on the judgment of the Hon’ble Delhi High Court in the case of DIT Vs Mitsubishi Corporation (2011) 330 ITR 578, regarding charging of interest u/s 234C of the Act, the ld. Counsel for the assessee submitted that it is consequential in nature. 14. In his rival submissions the ld. DR submitted that if the issue is to be restored to the file of the AO, he should verify whether the assessee asked for the deduction of TDS at a lower rate or not. 15. We have…

Kawasaki Heavy Industries Ltd., New Delhi vs. ACIT, New Delhi

In the result the appeal of the assessee is allowed in part

ITA 1321/DEL/2015[2011-12]Status: DisposedITAT Delhi15 Feb 2016AY 2011-12

Bench: Shri J. Sudhakar Reddy & Shri Kuldip Singh, Judicial Membr Ay: 2011-12 Kawasaki Heavy Industries Ltd. Vs. Acit, Circle 2(1)(2) 507, 508 & 509, 5Th Floor International Taxation Meridian Tower, Windsor Place Room No.310 New Delhi 110 001 3Rd Floor, E 2 Block Prayaksh Kar Bhawan Civic Cetnre, Jln Marg New Delhi 110 002

For Appellant: Sh. Piyush Kaushik, Adv. and Sh. Jasvinder Singh, C.AFor Respondent: Sh. Anuj Arora, CIT, D.R
Section 144(13)

…und against levy of interest u/s 234A and 234C is hereby dismissed. 16.1. Coming to interest levied u/s 234B the issue is adjudicated in favour of the assessee by applying the decision of the Jurisdictional High Court in the case of DIT vs. Jacobs Civil Inc. 330 ITR 578 (Del.) and Director of Income Tax (International Taxation) vs. G.E. Packaged Power Inc. judgement dt. 12.1.2015 in ITA no.352/2014 and other batch of cases. 16 A.Y. 2011-12 Kawasaki Heavy Industries Ltd., New Delhi 17. Ground no.7 is against the initiation of penalty u/s 271(1)(c ) of the Act. This ground is dismissed as not pressed. 18. In th…

Pr. CIT-I International Taxation vs. Animal Planet (Asia) Llc

Appeals are dismissed

ITA/862/2015HC Delhi17 Nov 2015
Section 234B

…that questions urged by it concerning interest payable under Section 234B of the Income Tax Act, 1961 stands covered against the Revenue by the decision of this Court in Director of Income Tax v. Jacabs Civil Incorporated & Mitsubishi Corporation [2010] 330 ITR 578 (Del). It is stated that the said decision has been challenged by the Revenue by way of a Special Leave Petition which is pending in the Supreme Court. 4. Following the aforementioned decision of this Court, these appeals are dismissed. S. MURALIDHAR, J VIBHU BAKHRU, J NOVEMBER 17, 2015 dn…

Agence Frances Press vs. Asst. Dirctor of Income Tax

Appeals are allowed in terms of the directions

ITA/222/2015HC Delhi23 Mar 2015
Section 194CSection 195Section 195(2)Section 234BSection 9(1)

…o.327/2012 dated 7.11.2013). 7. On the strength of that decision the ITAT upheld interest liability under Section 234B. In Alcatel Lucent (supra), this Court had distinguished a previous decision of another Division Bench i.e. DIT V. Jacabs Civil Inc. 330 ITR 578. 8. The decisions in Jacabs Civil Inc. and Alcatel Lucent were considered by the Karnataka High Court in Commissioner of Income Tax V. Samsung Electronics (2012) 345 ITR 494, which had been decided after a remand by the Supreme Court. The Supreme Court’s observation in respect of order dated 24.9.2009 had inter alia indicated the approac…

Director of Income Tax-II vs. British Airways Plc

ITA/276/2014HC Delhi05 Mar 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 234B

…, therefore, is the applicability of Section 234B and interest liability, if any, of the assessee. 6. At the outset, this Court notices that the issue as to the payment of interest under Section 234B has been answered by this Court in DIT V Jacabs Civil Inc. 330 ITR 578 and the recent decision in Director ofIncome \t> Tax, International Taxation V. GE Packaged Power Inc. ITA No.352- 391/2014 decided on 12.1.2015. The later decision, i.e. M/s G E Packaged Power Inc. also took note of an earlier discordant ruling in Director of Income Tax, International Taxation V. Alcatel Lucent USA Inc. in ITA No.327/2012 deci…

Director of Income Tax-II vs. British Airways Plc

ITA/279/2014HC Delhi05 Mar 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 234B

…, therefore, is the applicability of Section 234B and interest liability, if any, of the assessee. 6. At the outset, this Court notices that the issue as to the payment of interest under Section 234B has been answered by this Court in DIT V Jacabs Civil Inc. 330 ITR 578 and the recent decision in Director ofIncome \t> Tax, International Taxation V. GE Packaged Power Inc. ITA No.352- 391/2014 decided on 12.1.2015. The later decision, i.e. M/s G E Packaged Power Inc. also took note of an earlier discordant ruling in Director of Income Tax, International Taxation V. Alcatel Lucent USA Inc. in ITA No.327/2012 deci…

Director of Income Tax vs. British Airways Plc

ITA/278/2014HC Delhi05 Mar 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 234B

…, therefore, is the applicability of Section 234B and interest liability, if any, of the assessee. 6. At the outset, this Court notices that the issue as to the payment of interest under Section 234B has been answered by this Court in DIT V Jacabs Civil Inc. 330 ITR 578 and the recent decision in Director ofIncome \t> Tax, International Taxation V. GE Packaged Power Inc. ITA No.352- 391/2014 decided on 12.1.2015. The later decision, i.e. M/s G E Packaged Power Inc. also took note of an earlier discordant ruling in Director of Income Tax, International Taxation V. Alcatel Lucent USA Inc. in ITA No.327/2012 deci…

Director of Income Tax vs. British Airways Plc

ITA/274/2014HC Delhi05 Mar 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 234B

…, therefore, is the applicability of Section 234B and interest liability, if any, of the assessee. 6. At the outset, this Court notices that the issue as to the payment of interest under Section 234B has been answered by this Court in DIT V Jacabs Civil Inc. 330 ITR 578 and the recent decision in Director ofIncome \t> Tax, International Taxation V. GE Packaged Power Inc. ITA No.352- 391/2014 decided on 12.1.2015. The later decision, i.e. M/s G E Packaged Power Inc. also took note of an earlier discordant ruling in Director of Income Tax, International Taxation V. Alcatel Lucent USA Inc. in ITA No.327/2012 deci…

Director of Income Tax-II vs. British Airways Plc

ITA/280/2014HC Delhi05 Mar 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 234B

…, therefore, is the applicability of Section 234B and interest liability, if any, of the assessee. 6. At the outset, this Court notices that the issue as to the payment of interest under Section 234B has been answered by this Court in DIT V Jacabs Civil Inc. 330 ITR 578 and the recent decision in Director ofIncome \t> Tax, International Taxation V. GE Packaged Power Inc. ITA No.352- 391/2014 decided on 12.1.2015. The later decision, i.e. M/s G E Packaged Power Inc. also took note of an earlier discordant ruling in Director of Income Tax, International Taxation V. Alcatel Lucent USA Inc. in ITA No.327/2012 deci…

Director of Income Tax vs. British Airways Plc

ITA/277/2014HC Delhi05 Mar 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 234B

…, therefore, is the applicability of Section 234B and interest liability, if any, of the assessee. 6. At the outset, this Court notices that the issue as to the payment of interest under Section 234B has been answered by this Court in DIT V Jacabs Civil Inc. 330 ITR 578 and the recent decision in Director ofIncome \t> Tax, International Taxation V. GE Packaged Power Inc. ITA No.352- 391/2014 decided on 12.1.2015. The later decision, i.e. M/s G E Packaged Power Inc. also took note of an earlier discordant ruling in Director of Income Tax, International Taxation V. Alcatel Lucent USA Inc. in ITA No.327/2012 deci…

Director of Income Tax-II vs. British Airways Plc

ITA/272/2014HC Delhi05 Mar 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 234B

…, therefore, is the applicability of Section 234B and interest liability, if any, of the assessee. 6. At the outset, this Court notices that the issue as to the payment of interest under Section 234B has been answered by this Court in DIT V Jacabs Civil Inc. 330 ITR 578 and the recent decision in Director ofIncome \t> Tax, International Taxation V. GE Packaged Power Inc. ITA No.352- 391/2014 decided on 12.1.2015. The later decision, i.e. M/s G E Packaged Power Inc. also took note of an earlier discordant ruling in Director of Income Tax, International Taxation V. Alcatel Lucent USA Inc. in ITA No.327/2012 deci…

Synopsys International Limited, Bangalore vs. Jdit, Bangalore

In the result, the assessee's appeal for Assessment Year 2008-09 is partly allowed

ITA 1286/BANG/2011[2008-09]Status: DisposedITAT Bangalore06 Feb 2015AY 2008-09
For Appellant: Shri T. Suryanarayana, AdvocateFor Respondent: Shri Farhat Hussain Qureshi, CIT (D.R)
Section 143(3)Section 144C(13)Section 144C(4)Section 144C(5)Section 234BSection 9(1)(v)Section 9(1)(vi)

…matter of appeal before this Tribunal in the assessee's own case for Assessment Year 2006-07 in ITA No.550/Bang/2011 dt.31.10.2012 wherein the co-ordinate bench following the decision of the Hon'ble High Court of Delhi in the case of Jacobs Civil Inc. (2011) 330 ITR 578, held that the chargeability of interest under section 234B cannot be sustained. 6.2 Per contra, the learned Departmental Representative submitted that the charging of interest under section 234B of the Act is mandatory and supported the order of the DRP. 6.3.1 We have heard both parties and perused and carefully considered the material on record…

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

ITA/352/2014HC Delhi12 Jan 2015

…profits to the PEs. However, on the question of interest under Section 234B for failure to pay advance tax in terms of Sections 208 and 209, the CIT(A) applied the interpretation to Section 234B of the Act, given in Director of Income Tax v. Jacabs Civil Inc. 330 ITR 578 (Del.) and deleted the interest, therefore, holding in favour of the assessees. Before the ITAT, the Revenue argued that the position of law, as held by the Supreme Court in CIT v. Anjum M.H. Ghaswala and Ors. (2001) 252 ITR 01, was that interest under Section 234B is mandatory, and that the AO is not vested with any discretion in that regard. Th…

DIT 1, International Taxation vs. Alcatel Lucent Usa, Inc

ITA/338/2012HC Delhi07 Nov 2013

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 133Section 142Section 148Section 260A

…above contention including the judgment of a Division Bench of this'-courti inSBmectm.. • ... rpj .r- 'i • • Civil IncQiworatedFandsMitsubisMBjitf^i It was submitted b^re the'^glllil,^^ court held th^ Section 195 plapil^||||Jation on the pay|r to deduct II.. 330 ITR 578, •% l^'that in 'this, j'^dgment, this tax at source Ikt the rates in fDidilroialthe payments I # payer has defaillted in dMucMgmeKlaifiitdiwas';^^^ to the'Income Tax mad^ and if the i j ^ 1, '1 . 5 -x h. 0 Department to ta%^'^<^'''Bgainst the p^pi. uMea ^%etion 201 of the Act, but no action can be taKen foi iecoveEy«t)X.the''mterest under Section…

DIT 1 International Taxation vs. Alcatel Lucent World Services Inc

ITA/340/2012HC Delhi07 Nov 2013

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 133Section 142Section 148Section 260A

…above contention including the judgment of a Division Bench of this'-courti inSBmectm.. • ... rpj .r- 'i • • Civil IncQiworatedFandsMitsubisMBjitf^i It was submitted b^re the'^glllil,^^ court held th^ Section 195 plapil^||||Jation on the pay|r to deduct II.. 330 ITR 578, •% l^'that in 'this, j'^dgment, this tax at source Ikt the rates in fDidilroialthe payments I # payer has defaillted in dMucMgmeKlaifiitdiwas';^^^ to the'Income Tax mad^ and if the i j ^ 1, '1 . 5 -x h. 0 Department to ta%^'^<^'''Bgainst the p^pi. uMea ^%etion 201 of the Act, but no action can be taKen foi iecoveEy«t)X.the''mterest under Section…

DIT-1, International Taxation vs. Alcatel Lucent World Services Inc

ITA/337/2012HC Delhi07 Nov 2013

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 133Section 142Section 148Section 260A

…above contention including the judgment of a Division Bench of this'-courti inSBmectm.. • ... rpj .r- 'i • • Civil IncQiworatedFandsMitsubisMBjitf^i It was submitted b^re the'^glllil,^^ court held th^ Section 195 plapil^||||Jation on the pay|r to deduct II.. 330 ITR 578, •% l^'that in 'this, j'^dgment, this tax at source Ikt the rates in fDidilroialthe payments I # payer has defaillted in dMucMgmeKlaifiitdiwas';^^^ to the'Income Tax mad^ and if the i j ^ 1, '1 . 5 -x h. 0 Department to ta%^'^<^'''Bgainst the p^pi. uMea ^%etion 201 of the Act, but no action can be taKen foi iecoveEy«t)X.the''mterest under Section…