Section 234B Interest cannot be levied on Non Resident for failure on the part of payee to deduct TDS

In this case it is an undisputed fact that the tax on the entire income received by these assessees was required to be deducted at source at the appropriate rates by the respective payers u/s 195 of the Act . The Revenue have not placed before us any material controverting these findings of the ld. CIT(A) nor pointed out any contrary decision so as to enable us to take a different view in the matter. In nutshell, we are not impressed by the arguments of the ld. DR that the instant case is not covered by the aforesaid decision of Hon’ble jurisdictional High Court in Jacabs Civil Incorporated Mitsubishi Corpn.’s case (supra), followed by the ld. CIT(A). In view of the foregoing, especially when the tax was deductible at source from the entire income of these two assessees in terms of provisions of sec. 195(1) of the Act, in the light of view taken in the aforesaid decisions cited on behalf of these assessees, including the view taken by the Honb’le Bombay High Court in NGC Network Asia LLC’s case (supra) and the Hon’ble Jurisdictional High Court in their aforesaid decision in Jacabs Civil Incorporated Mitsuishi Corpn.’s (supra), we are of the opinion that these assessees are not liable to pay any interest u/s 234B of the Act.




IN THE ITAT DELHI



Assistant Director of Income-tax, Circle-1(1), International Taxation



v.



Alcatel Lucent USA Inc.



IT APPEAL NOS. 3821 TO 3829 (DELHI) OF 2011



[ASSESSMENT YEARS 2004-05 TO 2008-09]



OCTOBER 21, 2011



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