TaxTMI 
TaxTMI 
2008 (8) TMI 920
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....he order of Commissioner of Income Tax (Appeals) (hereinafter referred as CIT (Appeals)) is affirmed that the assessee is not liable to pay the interest under Section 234B of Income Tax Act, 1961. The question of law involved in the aforesaid appeal is as under:- Whether the Income Tax Appellate Tribunal has erred in law in holding that interest is not payable by the assessee under Section 234B even though the income of the assessee was subject to tax deduction at source. (2) Heard learned counsel for the parities at length. (3) Brief facts of the case are that assessee / respondent M/s Oil Ltd. is a non resident foreign company. Another non resident foreign company M/s Hardy Exploration & Production India Inc. has engaged the responden....
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....ction 208 of ITA 1961 reads as under:- "208. Advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee during that year, as computed in accordance with the provisions of this Chapter, is five thousand rupees or more." The procedure to compute the tax is given in the next Section i.e. Section 209. Section 234B of the Act provides that the interest shall be paid for defaults in payment of advance tax. Sub-section (1) of Section 234B of ITA 1961 reads as under:- "234B. (1) Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such ....
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....t under Section 234B of the Act. On the other hand Sri S.K. Posti, learned counsel for the respondent / assessee argued that for the negligence or inaction on the part of the employer or the company, who engaged the individual assessee, the individual assessee cannot be held responsible for it. (7) On behalf of assessee our attention is drawn to the cases of Commissioner of Income Tax, Bangalore and another Vs. Century Building Industries (P) Ltd. (2007) 7 Supreme Court Cases 262, and Commissioner of Income Tax and another Vs. Sedco Forex International Drilling Co. Ltd. (2003) Vol 264 ITR pg. 320 (Uttarakhand High Court). We have gone through the aforesaid cases and we found that in Commissioner of Income Tax and another Vs. Sedco Forex In....