The Tax Publishers2020 TaxPub(DT) 0355 (Mum-Trib)

INCOME TAX ACT, 1961

Section 234B

Amendment in section 209 by Finance Act, 2012 applies only from assessment year 2013-14 onwards and for the relevant assessment year, i.e., assessment year 2012-13 advance tax was not payable by assessee being a non-resident company. Accordingly, when duty was cast on payer to deduct and pay tax at source, on payer's failure to do so interest under section 234B could not be imposed on payee-assessee.

Interest under section 234B - Chargeability - Assessee being non-resident -

AO charged interest under Section 234B in case of non-resident assessee. Assessee challenged this.Held: Amendment in section 209 by Finance Act, 2012 applies only from assessment year 2013-14 onwards and for the relevant assessment year, i.e., assessment year 2012-13 advance tax was not payable by assessee being a non-resident company. Accordingly, when duty was cast on payer to deduct and pay tax at source, on payer's failure to do so interest under section 234B could not be imposed on payee-assessee.

Followed:DIT(IT) v. NGC Network Asia LLC (2009) 222 CTR 85 (Bom-HC) : 2009 TaxPub(DT) 1304 (Bom-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 14

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT