TaxTMI 
TaxTMI 
2008 (4) TMI 362
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....has erred in: (i) Not considering the provisions of s. 209 of the IT Act, which lay the procedure for computation of quantum of advance tax payable by an assessee and thereby erroneously held that payment of advance tax in foreign country would have the nature of advance tax. (ii) Not considering the amendment made in s. 234B with effect from (sic) and thereby against the legislative intention, he directed the benefit to be given prior to 1st April, 2007 also, especially for the asst. yr. 2005-06. (iii) Not taking the fact into consideration that payment of tax in a Contracting State as per DTAA cannot take the shape of advance tax because, for advance tax the assessee is supposed to estimate the total income and prepaid taxes thereon to....
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....ant to the asst. yr. 1998-99 is in the nature of advance tax and has to be treated as such, allowed the appeal of the assessee. Aggrieved, the Revenue is in appeal. 4. We have heard the rival submissions and perused the material on record. It is undisputed that the DTAA is silent on the point as to whether to treat the tax paid in USA as advance tax or self-assessment tax. It is also undisputed fact that the entire tax payment made in USA was made within the financial years relevant to the asst. yrs. 1998-99 and 2005-06, and had this been paid in India, the same would have been treated as advance tax. Moreover the assessee has not delayed the payment of taxes even though the same were paid in USA. When there is no default in payment of tax....