M/S. LINKLATERS, MUMBAI V. THE ADIT (IT)-3(2), MUMBAI

ITA 1078/MUM/2008

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70838 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: L
• Next Hearing Date: 07-09-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 13-02-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY SRI VASTAVA
• Assessee Lawyers: NIRAJ SHETH
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH L, MUMBAI , ! '# $## #% , & ! ' BEFORE SHRI RAJENDRA SINGH, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER . : 1078 / / 2008, 2003-04 ITA NO. : 1078/MUM/2008 (ASSESSMENT YEAR: 2003-04) ------------------------------------------ LINKLATERS, C/O DELOITTE HASKINS & SELLS, 264-256, DR. ANNIE BESANT RD. WORLI, MUMBAI -400 030 PAN: AABFL 2160 M VS ADIT(IT)-3(2), SCINDIA HOUSE, N.M. ROAD, BELLARD ESTATE, MUMBAI -400 001 (APPELLANT) (RESPONDENT) APPELLANT BY : MR. NIRAJ SHETH RESPONDENT BY : MR. AJAY SRIVASTAVA /DATE OF HEARING : 07-08-2013 / DATE OF PRONOUNCEMENT : 14-08-2013 + O R D E R $## #% , : PER VIVEK VARMA, JM: THE APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER O F CIT(A)- 33, MUMBAI, DATED 17.12.2007, WHEREIN, THE ONLY GROUND OF A PPEAL IS WITH REGARD TO CHARGE OF INTEREST U/S 234B. 2. THE FACTS ARE THAT, WHILE GIVING EFFECT TO THE CIT(A)S OR DER DATED 31.10.2006, THE AO IN THE ORDER DATED 17.8.2007, OBSERVED CHARGE INTEREST U/S 234B, AS PER LAW. THIS IS A CASE OF A NON-RE SIDENT LAW FIRM HAVING OFFICERS IN UNITED KINGDOM AND IS TAX RESIDENT IN UK. THE ENTIRE INCOME, WHICH HAS BEEN DERIVED FROM INDIAN PROJECT S WAS SUBJECT TO DEDUCTION OF TAX AT SOURCE U/S 195, IN WHICH CASE, THE ISSUE OF CHARGING INTEREST U/S 234B DOES NOT ARISE. 3. THIS ISSUE HAS, SINCE BEEN COVERED BY THE HONBLE BOM BAY HIGH COURT IN THE CASE OF DIRECTOR OF INCOME TAX (IT) V NGC N ETWORK ASIA LINKLATERS ITA 1078/M/2008 2 LLC, REPORTED IN 313 ITR 187, WHEREIN, THE BOMBAY HIGH C OURT HELD THAT, NO ADVANCE TAX IS EXIGIBLE IN CASES, WHERE THE ASSES SEE WAS NOT LIABLE TO PAY ADVANCE TAX. 4. WE, THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) AND DIR ECT THE AO TO DELETE THE INTEREST CHARGED U/S 234B. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH AUGUST, 2013. SD/- SD/- ( ) ( $## #% ) ! ! (RAJENDRA SINGH) (VIVEK VARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 14 TH AUGUST, 2013 / COPY TO:- 1) / THE APPELLANT. 2) / THE RESPONDENT. 3) ' '# ( ) XXXIII, MUMBAI / THE CIT (A)- XXXIII , MUMBAI. 4) ' '# /DIT(IT)/CONCERNED , MUMBAI / THE DIT(IT)/ CONCERNED , MUMBAI 5) $%& ' , ' ' , ()* / THE D.R. L BENCH, MUMBAI. 6) &+ , COPY TO GUARD FILE. '-./ / BY ORDER / / TRUE COPY // [ 0 / 1 )2 ' ' , ()* DY. / ASSTT. REGISTRAR I.T.A.T., MUMBAI *451 . . * CHAVAN, SR. PS