The proviso to section 209(1)(d) inserted by the Finance Act, 2012 (with effect from April 1, 2012 and applicable to cases of advance tax payable in the financial year 2012-13 and thereafter) makes it clear that the assessee cannot reduce the amounts of Income-tax on sums paid to it by the payer without deduction of tax at source, while computing its liability for advance tax. The proviso is in the nature of an exception to section 209(1)(d), as an assessee, who has received any income without deduction or collection of tax at source, is made liable to pay advance tax in respect of such incomeThe liability for payment of interest as provided in section 234B is for default in payment of advance tax. While the definition of “assessed tax” under section 234B pertains to tax deducted or collected at source, the preconditions of section 234B, viz., liability to pay advance tax and non-payment or short payment of such tax, have to be satisfied, after which interest can be levied taking into account the assessed tax. Therefore, section 209 of the Act which relates to the computation of advance tax payable by the assessee cannot be ignored while construing the contents of section 234B and section 234B cannot be read in isolation without reference to the other provisions of Chapter XVII. There are provisions in the Act enabling the Revenue to proceed against the payer who has defaulted in deducting tax at source. (AY. 1988-89 to 2008-09) (Editorial note Decision in DIT v. Jacabs Civil Incorporated (2011) 330 ITR 578 (Delhi) (HC), affirmed) Decision in DIT (IT) v. Alcatel Lucent. U.S.A. Inc (2014) 2 ITR-OL 276 (Delhi) (HC), reversed.)
DIT v. Mitsubishi Corporation (2021) 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) DIT v. Mastercard International Inc. 438 ITR 174/ 205 DTR 465/ 322 CTR 569 / 283 Taxman 273 (SC) CIT v. Western Atlas International Inc. 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) CIT v. Mastercard International Inc. 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) CIT v. Sahara India Mutual Benefit Co. Ltd. 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) DIT(IT) v. Calyon Bank 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) DIT(IT) v. De Beers UK Ltd. 438 ITR 174 / 205 DTR 465 / 322 CTR 569/ 283 Taxman 273 (SC) CIT(IT) v. National Petroleum Construction Co. 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) CIT (IT) v. Fox Networks Group Asia Pacific Ltd 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) CIT (IT) v. Helix Energy Solutions Group Inc 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) Alcatel-Lucent Italia SPA v. ADIT 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) Alcatel-Lucent France v. ADIT 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) Alcatel-Lucent USA Inc v. ADIT 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) Alcatel-Lucent Enterprise v. ADIT 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) Alcatel-Lucent Deutschland AG v. ADIT 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) Alcatel Canada Inc v. ADIT 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC) Alcatel Lucent World Services Inc v. DIT (IT) 438 ITR 174 / 205 DTR 465 / 322 CTR 569 / 283 Taxman 273 (SC)
S. 234B : Interest-Advance tax-Tax deductible at source-Amount received without deduction of tax at source-Interest on short fall not leviable for assessment prior to financial year 2012-13-Proviso introduced with effect from 1-4-2012. [S. 191, 209(1)(d)]