DIT v. NGC Network Asia LLC

STANDARD CHARTERED BANK (SINGAPORE)LIMITED ,MUMBAI vs. THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE 4(2)(2), MUMBAI

In the result, appeal of the assessee is allowed

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Rahul Chaudhary, Hon’Ble

…4C of the Act for the fault of the payers. 10. For this proposition, we draw support from the decision of the Hon’ble Jurisdictional High Court of Bombay in the case of Director of Income-tax (International Taxation) v. Ngc Network Asia LLC reported in [2009] 313 ITR 187 (Bombay), wherein the Hon’ble High Court held that when a duty is cast on the payer to deduct and pay the tax at source, on payer's failure to do so, no interest under section 234B can be imposed on the payee assessee. We are of the considered view that it is not case of deferment in payment of advance tax on income as envisaged in Section 234C o…

M/S. LINKLATERS,MUMBAI vs. THE DDIT (IT) 4(1), MUMBAI

In the result, appeal filed by the revenue is dismissed

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blelinklaters V. Ddit (International Taxation) – 4(1) Scindia House, N.M. Road C/O. Deloitte Haskins & Sells Llp Bellard Estate, Mumbai - 400001 Indiabulls Finance Centre Tower 3 28Th Floor, Senapati Bapat Marg Elphinstone Road (West) Mumbai - 400013 Pan: Aabfl2160M (Appellant) (Respondent) Ddit (International Taxation) – 4(1) V. Linklaters Scindia House, N.M. Road C/O. Deloitte Haskins & Sells Llp Bellard Estate, Mumbai - 400001 Indiabulls Finance Centre Tower 3 28Th Floor, Senapati Bapat Marg Elphinstone Road (West) Mumbai - 400013 Pan: Aabfl2160M (Appellant) (Respondent)

…an Payers. Accordingly, the Hon’ble Delhi High Court has upheld levy of interest u/s 234B of the Act. 14. On the contrary, the Ld A.R placed strong reliance on the decision rendered by the Hon’ble Bombay High Court in the case of DIT Vs. Ngc Network Asia LLC (313 ITR 187)(Bom), wherein the Hon’ble jurisdictional High Court has held that when a duty is cast on the payer to pay tax at source, on failure, no interest can be imposed on the payee. 15. We have heard the rival contentions on this issue. Though the reasoning given by the Hon’ble Delhi High Court (referred supra) is appealing, yet we are unable to follow…

DDIT (IT)-4(1), MUMBAI vs. M/S. LINKLATERS, MUMBAI

In the result, appeal filed by the revenue is dismissed

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blelinklaters V. Ddit (International Taxation) – 4(1) Scindia House, N.M. Road C/O. Deloitte Haskins & Sells Llp Bellard Estate, Mumbai - 400001 Indiabulls Finance Centre Tower 3 28Th Floor, Senapati Bapat Marg Elphinstone Road (West) Mumbai - 400013 Pan: Aabfl2160M (Appellant) (Respondent) Ddit (International Taxation) – 4(1) V. Linklaters Scindia House, N.M. Road C/O. Deloitte Haskins & Sells Llp Bellard Estate, Mumbai - 400001 Indiabulls Finance Centre Tower 3 28Th Floor, Senapati Bapat Marg Elphinstone Road (West) Mumbai - 400013 Pan: Aabfl2160M (Appellant) (Respondent)

…an Payers. Accordingly, the Hon’ble Delhi High Court has upheld levy of interest u/s 234B of the Act. 14. On the contrary, the Ld A.R placed strong reliance on the decision rendered by the Hon’ble Bombay High Court in the case of DIT Vs. Ngc Network Asia LLC (313 ITR 187)(Bom), wherein the Hon’ble jurisdictional High Court has held that when a duty is cast on the payer to pay tax at source, on failure, no interest can be imposed on the payee. 15. We have heard the rival contentions on this issue. Though the reasoning given by the Hon’ble Delhi High Court (referred supra) is appealing, yet we are unable to follow…

DCIT (IT) 3(2)(2), MUMBAI vs. MWH CONSULTANTS UK LTD, MUMBAI

Bench: Shri Kuldip Singh () & Shri Amarjit Singh () Assessment Year: 2012-13 The Deputy Commissioner Of Income Stantee Uk Ltd., (Formerly Known Tax (It)-Circle-3(2)(2), As Mwh Uk Ltd.), 1St Floor, Air India Building, Nariman Vs. C/O Deloitte Haskins & Sells Llp Point, Mumbai-400021. One International Centre Tower 3, 28Th Floor, Senapati Bapat Marg, Prabhadevi (West), Mumbai-400013. Pan No. Aahcm 3429 K Appellant Respondent Assessment Year: 2012-13 Stantee Uk Ltd., (Formerly Known As The Deputy Commissioner Of Mwh Uk Ltd.), Income Tax (It)-Circle-3(2)(2), 1St Floor, Air India Building, C/O Deloitte Haskins & Sells Llp One Vs. International Centre Tower 3, 28Th Nariman Point, Mumbai-400021. Floor, Senapati Bapat Marg, Prabhadevi (West), Mumbai-400013. Pan No. Aahcm 3429 K Appellant Respondent Assessment Year: 2013-14 Stantee Uk Ltd., (Formerly Known As The Deputy Commissioner Of Mwh Uk Ltd.), Income Tax (It)-Circle-3(2)(2), 1St Floor, Air India Building, C/O Deloitte Haskins & Sells Llp One Vs. International Centre Tower 3, 28Th Nariman Point, Mumbai-400021. Floor, Senapati Bapat Marg, Prabhadevi (West), Mumbai-400013. Pan No. Aahcm 3429 K

…appellate proceedings before us the Ld. counsel has contended that interest u/s 234B cannot be levied on a foreign company and placed reliance on the decision of Hon’ble Jurisdictional High Court of Bombay in the case of DIT(IT) v. NGC Network Asia LLC (2009) 313 ITR 187 and the decision of the Hon’ble Supreme Court in the case of Director of Income Tax v. Mitshbishi Corporation (Civil Appeal No. 1262 of 2016). 12. Heard both the sides and perused the judicial pronouncement referred by the Ld. counsel. Hon’ble Bombay High Court in the case of Director of Income Tax v. NCG Network Asia Ltd. held that on failure of…

GEMOLOGICAL INSTITUTE OF AMERICA INC. ,MUMBAI vs. ASST CIT (IT) CIRCLE- 2 (3)(2), MUMBAI

In the result, the appeal for the assessment year 2016-17 is also partly allowed in the terms indicated above

…of the actual deduction of tax at source, as long as the tax is deductible at source, the tax deductible will be reduced from the advance tax liability. That is what Hon’ble jurisdictional High Court has held in the case of DIT Vs NGC Network Asia LLC [(2009) 313 ITR 187 (Bom)]. The levy of interest under section 234B, on the facts of this case when tax withholding obligations under section 195 were clearly applicable in respect of any payment, having an element of income taxable in India, to the assessee, is wholly unsustainable in law. We, therefore, uphold the plea of the assessee on this point. 37. Ground no…

GEMOLOGICAL INSTITUTE OF AMERICA INC.,MUMBAI vs. ASST CIT (IT) CIRCLE- 2 (3)(2), MUMBAI

In the result, the appeal for the assessment year 2016-17 is also partly allowed in the terms indicated above

…of the actual deduction of tax at source, as long as the tax is deductible at source, the tax deductible will be reduced from the advance tax liability. That is what Hon’ble jurisdictional High Court has held in the case of DIT Vs NGC Network Asia LLC [(2009) 313 ITR 187 (Bom)]. The levy of interest under section 234B, on the facts of this case when tax withholding obligations under section 195 were clearly applicable in respect of any payment, having an element of income taxable in India, to the assessee, is wholly unsustainable in law. We, therefore, uphold the plea of the assessee on this point. 37. Ground no…

GEMOLOGICAL INSTITUTE OF AMERICA INC. ,MUMBAI vs. DCIT(IT) CIR. 2(3)(2), MUMBAI

In the result, the appeal for the assessment year 2016-17 is also partly allowed in the terms indicated above

…of the actual deduction of tax at source, as long as the tax is deductible at source, the tax deductible will be reduced from the advance tax liability. That is what Hon’ble jurisdictional High Court has held in the case of DIT Vs NGC Network Asia LLC [(2009) 313 ITR 187 (Bom)]. The levy of interest under section 234B, on the facts of this case when tax withholding obligations under section 195 were clearly applicable in respect of any payment, having an element of income taxable in India, to the assessee, is wholly unsustainable in law. We, therefore, uphold the plea of the assessee on this point. 37. Ground no…

GEMOLOGICAL INSTITUTE OF AMERICA, INC,MUMBAI vs. DCIT (IT) RG 2(3)(2), MUMBAI

In the result, the appeal for the assessment year 2016-17 is also partly allowed in the terms indicated above

…of the actual deduction of tax at source, as long as the tax is deductible at source, the tax deductible will be reduced from the advance tax liability. That is what Hon’ble jurisdictional High Court has held in the case of DIT Vs NGC Network Asia LLC [(2009) 313 ITR 187 (Bom)]. The levy of interest under section 234B, on the facts of this case when tax withholding obligations under section 195 were clearly applicable in respect of any payment, having an element of income taxable in India, to the assessee, is wholly unsustainable in law. We, therefore, uphold the plea of the assessee on this point. 37. Ground no…

GEMOLOGICAL INSTITUTE OF AMERICA, INC,MUMBAI vs. DCIT (IT) RG 2(3)(2), MUMBAI

In the result, the appeal for the assessment year 2016-17 is also partly allowed in the terms indicated above

…of the actual deduction of tax at source, as long as the tax is deductible at source, the tax deductible will be reduced from the advance tax liability. That is what Hon’ble jurisdictional High Court has held in the case of DIT Vs NGC Network Asia LLC [(2009) 313 ITR 187 (Bom)]. The levy of interest under section 234B, on the facts of this case when tax withholding obligations under section 195 were clearly applicable in respect of any payment, having an element of income taxable in India, to the assessee, is wholly unsustainable in law. We, therefore, uphold the plea of the assessee on this point. 37. Ground no…

GEMOLOGICAL INSTITUTE OF AMERICA INC.,MUMBAI vs. DCIT (IT) 2(3)(2), MUMBAI

In the result, the appeal for the assessment year 2016-17 is also partly allowed in the terms indicated above

…of the actual deduction of tax at source, as long as the tax is deductible at source, the tax deductible will be reduced from the advance tax liability. That is what Hon’ble jurisdictional High Court has held in the case of DIT Vs NGC Network Asia LLC [(2009) 313 ITR 187 (Bom)]. The levy of interest under section 234B, on the facts of this case when tax withholding obligations under section 195 were clearly applicable in respect of any payment, having an element of income taxable in India, to the assessee, is wholly unsustainable in law. We, therefore, uphold the plea of the assessee on this point. 37. Ground no…

RACKSPACE US, INC.,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX(INTERNATIONAL TAXATION)-4(1)(1), MUMBAI

In the result, the appeal filed by the assessee is hereby ordered to be allowed

…e Hon’ble ITAT in the assessee’s own case(supra) on record:- “20. At the outset, the learned Counsel for the assessee stated that the issue is squarely covered by the decision of Hon’ble Bombay High court in the case of DIT(IT) vs. Ngc Network Asia LLC [2009] 313 ITR 187 (Bombay), wherein it is held that when a duty is cast on payer to deduct and pay the tax at source, on payer's failure to do so interest under section 234B of the Act cannot be imposed on payee assessee. Hon’ble High Court held as under: - “5. Under the provisions of the present Act, the issue had come for consideration in the case of CIT v. Sedc…

RACKSPACE US, INC.,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX(INTERNATIONAL TAXATION)-4(1)(1), MUMBAI

In the result, the appeal filed by the assessee is hereby ordered to be allowed

…e(supra) on record:- Assessment year: 2011-12 Page 9 of 10 “20. At the outset, the learned Counsel for the assessee stated that the issue is squarely covered by the decision of Hon’ble Bombay High court in the case of DIT(IT) vs. Ngc Network Asia LLC [2009] 313 ITR 187 (Bombay), wherein it is held that when a duty is cast on payer to deduct and pay the tax at source, on payer's failure to do so interest under section 234B of the Act cannot be imposed on payee assessee. Hon’ble High Court held as under: - “5. Under the provisions of the present Act, the issue had come for consideration in the case of CIT v. Sedc…

M/S. NGC NETWORK ASIA, LLC,MUMBAI vs. THE ITO (IT) 3(2), MUMBAI

In the result, appeal of the assessee for A

Bench: Shri M.Balaganesh, Am & Shri Ram Lal Negi, Jm M/S.Ngc Network Asia Llc Vs. Dy. Director Of Income Tax C/O. Dsk Legal (International Tax)– 3(2) 4Th Floor, Express Towers Scindia House Nariman Point Ballard Estate Mumbai – 400 021 Mumbai – 400 038 Pan/Gir No.Aabcn3136G (Appellant) .. (Respondent) M/S.Ngc Network Asia Llc Vs. Assistant Director Of C/O. Ngc Network(India) Income Tax (International Private Limited Tax)– 3(2) 1St Floor, Scindia House Star House, Dr. E. Moses Road, Mahalaxmi Ballard Estate Mumbai – 400 001 Mumbai – 400001 Pan/Gir No.Aabcn3136G (Appellant) .. (Respondent) M/S.Ngc Network Asia Llc Vs. The Income Tax Officer C/O. Ngc Network(India) (International Tax) 3(1) Private Limited Scindia House Star House, Dr. E. Moses Ballard Estate Road, Mahalaxmi Mumbai – 400001 Mumbai – 400 001 Pan/Gir No.Aabcn3136G (Appellant) .. (Respondent) M/S. Ngc Network Asia Ltd., M/S.Ngc Network Asia Llc Vs. The Income Tax Officer C/O. Ngc Network(India) (International Tax) 3(1) Private Limited Scindia House Star House, Dr. E. Moses Ballard Estate Road, Mahalaxmi Mumbai – 400038 Mumbai – 400 001 Pan/Gir No.Aabcn3136G (Appellant) .. (Respondent) & M/S.Ngc Network Asia Llc Vs. The Income Tax Officer C/O. Ngc Network(India) (International Tax) 3(2) Private Limited Scindia House Star House, Dr. E. Moses Ballard Estate Road, Mahalaxmi Mumbai – 400038 Mumbai – 400 001 Pan/Gir No.Aabcn3136G (Appellant) .. (Respondent) Assessee By Shri Porus Kaka Revenue By Shri Shreenivasaraghava Iyengar Date Of Hearing 18/12/2020 Date Of Pronouncement 30/12/2020

…interest u/s.234B of the Act which was not appreciated by the ld. AO and the ld. CIT(A). We find that the issue in dispute is squarely addressed by the decision of the Hon‟ble Jurisdictional High Court in the case of DCIT vs. NGC Network Asia LLC reported in 313 ITR 187 (Bom) wherein the Hon‟ble Court had held that when the duty is cast on the payer to deduct and pay the tax at source and on payer‟s failure to do so, interest u/s.234B of the Act cannot be imposed on the payee assessee. Moreover, we also find that the proviso to Section 209(1) of M/s. NGC Network Asia Ltd., the Act, which has been heavily relied…

SUDHIR S MEHTA,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX - CENTRAL CIRCLE 4(1), MUMBAI

In the result, appeal filed by the assessee stands allowed

Bench: Shri C. N. Prasad, Hon'Ble

…of tax deductible at source on the income assessed. The appellant relies in this regard on the following decisions. He relied upon the cases of Motorola inc. v. DCIT [95 ITD 269 (Del.) (SB)], Sedco Fores Drilling Co. Ltd. [264 ITR 320], NGC Network Asia LLC [313 ITR 187], Summit Bhatacharya [ 300 ITR (AT) 347 (Bom)(SB)], Vijal Gopal Jindal [ITA No. 4333/Del/2009] & Emillo Ruiz Berdejo [320 ITR 190 (Bom)]. DR relied upon the cases of Devine Holdings Pvt. Ltd. 3.1.We have heard the rival submissions and perused the material before us. We find that in the case of Devine Holdings Pvt. Ltd. Hon'ble Bombay High Court…