TaxTMI 
TaxTMI 
2008 (7) TMI 284
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....dated August 24, 1999, passed by the Income-tax Appellate Tribunal, (Delhi Bench "A"), passed in I. T. A. No. 381/Del/99, whereby the appeal of the assessee was allowed holding that he is not liable to pay interest under section 234B of the Income-tax Act, 1961. Income-tax Appeal No. 72 of 2007 is directed against the order dated September 15, 2006, passed by the Income-Tax Appellate Tribunal (Delhi Bench "F") in I. T. A. No. 3616/D/2003, in which the appeal of the Revenue is dismissed and the order of the Commissioner of Income-tax (Appeals) (hereinafter referred as the Commissioner of Income-tax (Appeals)) is affirmed that the assessee is not liable to pay the interest under section 234B of the Income-tax Act, 1961. The common question of....
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....arged under section 234B of the Act. Aggrieved by the said order the assessee filed appeal before the Commissioner of Income-tax (Appeals), which was dismissed, vide order dated December 29, 1998. On this, the assessee went in appeal before the Income-tax Appellate Tribunal (hereinafter referred as "the ITAT"), which allowed the appeal and held that the interest is not payable by the assessee under section 234B of the aforesaid Act as the assessee itself is not liable to deduct tax at source in order to pay advance tax under section 208 of the Act. Hence, this appeal. In I. T. A. No. 72 of 2007, initially on the return filed by the assessee no interest was charged on the tax assessed by the Assessing Officer, but subsequently on receiving a....
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....e 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." 7. 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 the Income-tax Act, 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 assessee under the provisions of section 210....
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....y, who engaged the individual assessee, the individual assessee cannot be held responsible for it. 9. On behalf of the assessee our attention is drawn to the cases of CIT v. Century Building Industries P. Ltd. [2007] 293 ITR 194 (SC); [2007] 7 SCC 262 and CIT v. Sedco Forex International Drilling Co. Ltd. [2003] 264 ITR 320 (Uttarakhand). We have gone through the aforesaid cases and we found that in CIT v. Sedco Forex International Drilling Co. Ltd. [2003] 264 ITR 320 (Uttarakhand) a Division Bench of this court in a similar case has taken the view that where the employer company has not calculated the amount of tax as required under section 209(1) (d) of the Income-tax Act, 1961, the individual assessee cannot be faulted. In the case of....