TaxTMI 
TaxTMI 
2014 (1) TMI 1267
X X X X Extracts X X X X
X X X X Extracts X X X X
....ated at AIFACS, 1, Rafi Marg, New Delhi on 2-3-2007. Thereafter Reassessment proceedings were initiated on 22 entities of G.E. Group by issue of notices u/s 148 of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for the AYs 2000-2001 to 2006-07. The Assessing Officer, after rejecting the objections of the assesses to the reopening of assessments, completed assessments u/s 143(3) read with S.147 of the Act. 3. The Assessing Officer held that : (a) The assessee i.e. 22 GE Overseas entities have a Permanent Establishment in India; (b) That they have a dependent agency Permanent Establishment in India in the form of G.E. India Industrial (P.) Ltd. (GEIIPL). 3.1 The Assessing ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on'ble Supreme Court in the case of CIT v. M.H. Ghaswala [2001] 252 ITR 1 has ruled that interest u/s 234B is mandatory in nature and the AO does not have any discretion on it." 5. Smt. Punam Sidhu, the Ld. CIT, D.R. submitted that the Revenue has not accepted the judgment of the Jurisdictional High Court on the issue and that an SLP has been filed before the Hon'ble Supreme Court which has been admitted. 6. The ld. Counsel for the assessee Mr. Sachit Jolly submits that the issue is no longer res integra in view of the decision of the Jurisdictional High Court in the case of Jacob Civil Incorporated (supra). 7. We have heard rival contentions. On a careful consideration of the facts and circumstances of the case and on perusal of the pap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ated v. ADIT: 153 TTJ 513 (Del) 9. On consideration of the submissions, we find that the issue is covered in favour of the assessees by the judgment of the Jurisdictional High Court. The Hon'ble Delhi High Court in the case of Jacabs Civil Inc. (supra) held as follows. "Section 2(1) of the Act defines "advance tax" to mean the advance tax payable in accordance with the provisions of Chapter XVII-C of the Act. These provisions are contained from Section 207 onwards. Section 209 falls under this Chapter. Sub-section (1) thereof deals with four situations under which the advance tax payable by the assessee is to be computed. Admittedly, these cases do not concern with clauses (a) to (c). Clause (d) of sub-Section (1)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....was required to deduct at source from the payments made to a non-resident but also penalties etc. Once it is found that the liability was that of the payer and the said payer has defaulted in deducting the tax at source, the Department is not remedy-less and therefore can take action against the payer under the provisions of Section 201 of the Income-tax Act, and compute the amount accordingly. No doubt, if the person (payer) who had to make payments to the non-resident had defaulted in deducting the tax at source from such payments, the non-resident is not absolved from payment of taxes thereupon. However, in such a case, the non-resident is liable to pay tax and the question of payment of advance tax would not arise. This would be clear f....