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of <h1>Tribunal Affirms No Interest Under Section 234B for Non-Resident Firm Due to Tax Deducted at Source Rule</h1> <h3>The Deputy Director of Income Tax (International Taxation) -4 (1) Mumbai Versus M/s. Linklaters C/o. M/s. Deloitte Haskins & Sells Chartered Accountants</h3> The appeals by the Revenue were dismissed by the Tribunal, affirming the CIT(A)'s decision not to charge interest under section 234B. The CIT(A) found ... - Issues involved: Appeal against the direction of CIT(A) for not charging interest u/s. 234B due to tax deduction at source.Issue 1: Charging of interest u/s. 234BThe Revenue appealed against the CIT(A)'s decision not to charge interest u/s. 234B as tax was deductible at source. The non-resident firm's income was determined by the Assessing Officer, including charging interest u/s. 234B. The CIT(A) ruled that interest is not applicable under this section since tax was deductible at source on the income. Section 195 mandates deduction of income tax at source for payments to non-residents. The assessee, being a non-resident, is subject to tax deduction at source if income is taxable under the Act. Sections 208 and 209 outline the advance tax payment requirements and deductions. The Tribunal's Special Bench decision in Motorola Inc. Vs. DCIT and the High Court's affirmation in D.I (International Taxation) VS. NGC Network Asia Ltd. support the CIT(A)'s decision. Consequently, the appeals were dismissed, upholding the deletion of interest u/s. 234B.Conclusion:Both appeals by the Revenue were dismissed, affirming the CIT(A)'s decision to not charge interest u/s. 234B due to tax deduction at source for the non-resident firm's income.
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