NDLI: Director of Income Tax, New Delhi Vs. M/s Mitsubishi Corporation

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Income Tax Act 1961
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Others
Headnote	Income Tax Act, 1961 – ss.190, 201, 209 and 234B – Proviso to s.209(1)(d), inserted by the Finance Act, 2012 – Interpretation of s.209 (1)(d) – The Respondent- Assessee is a non-resident company incorporated in Japan, with operations in India – Notice was issued to the Respondent-Assessee u/s. 143 (2) of the Act on 12.10.2006 – An assessment order was passed for the years 1998- 99 to 2004-05 holding that a portion of the Assessee’s income was attributable to its activities in India and was therefore liable to be taxed in India, under Articles 4, 5 and 6 of the Double Taxation Avoidance Agreement between India and Japan, read with the provisions of the Act – The Respondent- Assessee filed appeals before the Commissioner of Income-Tax (Appeals) (CIT) only with respect to levy of interest u/s. 234B of the Act – CIT dismissed the appeals – Respondent filed appeal before Income Tax Appellate Tribunal (ITAT) – While allowing the appeal, the ITAT held that the respondent was not liable for payment of interest u/s. 234B, when tax at source was deductible from payment made to the Respondent – This decision was challenged before the High Court, which was dismissed and the order of ITAT was upheld – Batch of appeals were filed in Supreme Court pursuant to the judgment of High Court – Respondent-Assessee submitted that s.234B of the Act cannot be read in isolation but in the light of s.209 of the finance Act, 2012 – The Revenue contended that s.234B should be read in isolation – Held: The liability for payment of interest as provided in s.234B is for default in payment of advance tax – While the definition of “assessed tax”u/s.234B pertains to tax deducted or collected at source, the preconditions of s.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, s.209 of the Act which relates to thecomputation of advance tax payable by the assessee cannot be ignored while construing the contents of s.234B – The proviso to s.209(1)(d) is in the nature of an exception to s.209(1)(d), as an assessee, who has received any income without deduction or collection of tax, is made liable to pay advance tax in respect of such income – The proviso makes it clear that assesse cannot reduce the amounts of income tax paid to it by the payer without deduction, while computing liability for advance tax – However, the intended effect of amendment made to s.209(1)(d) by insertion of the proviso has to be understood to entitle the assessee, for all assessments prior to the financial year 2012-2013 to reduce the amount of income- tax which would be deductible or collectible, in computation of its advance tax liability – Therefore, prior to the financial year 2012-2013, the amount of income tax which is deductible or collectible at source can be reduced by the assessee while calculating advance tax, the Respondent cannot be held to have defaulted in payment of its advance tax liability – The view adopted by the High Court is upheld.
Judge	Hon'ble Mr. Justice L. Nageswara Rao
Neutral Citation	2021 INSC 495
Petitioner	Director Of Income Tax, New Delhi
Respondent	M/s Mitsubishi Corporation
SCR	[2021] 7 S.C.R. 750
Judgement Date	2021-09-17
Case Number	1262

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

Director of Income Tax, New Delhi Vs. M/s Mitsubishi Corporation

Please Log-in to view this content

Commissioner of Income Tax-v, New Delhi Vs. M/s. Oracle Software India Ltd.

Commissioner of Income Tax, Delhi-1 Vs. M/s Container Corporation of India Ltd.

M/s. Toyota Motor Corporation Vs. Commnr. of Income Tax

M/s Super Malls Private Limited Vs. Principal Commissioner of Income Tax 8, New Delhi

Commissioner of Income-tax, New Delhi Vs. M/s Eli Lilly & Company (india) Pvt. Ltd.

Commissioner of Income Tax Vs. M/s Jindal Steel & Power Limited Through Its Managing Director

Commissioner of Income Tax Kolkata Xiiv. M/s Calcutta Export Company Vs. M/s Calcutta Export Company

Director General of Income Tax (investigation) Pune & Ors. Vs. M/s. Spacewood Furnishers Pvt. Ltd. & Ors.

Dalmia Cement Ltd., Rajasthan Vs. Commissioner of Income Tax, New Delhi

Director of Income Tax, New Delhi Vs. M/s Mitsubishi Corporation

Director of Income Tax, New Delhi Vs. M/s Mitsubishi Corporation

Please Log-in to view this content

Similar Documents

Commissioner of Income Tax-v, New Delhi Vs. M/s. Oracle Software India Ltd.

Commissioner of Income Tax, Delhi-1 Vs. M/s Container Corporation of India Ltd.

M/s. Toyota Motor Corporation Vs. Commnr. of Income Tax

M/s Super Malls Private Limited Vs. Principal Commissioner of Income Tax 8, New Delhi

Commissioner of Income-tax, New Delhi Vs. M/s Eli Lilly & Company (india) Pvt. Ltd.

Commissioner of Income Tax Vs. M/s Jindal Steel & Power Limited Through Its Managing Director

Commissioner of Income Tax Kolkata Xiiv. M/s Calcutta Export Company Vs. M/s Calcutta Export Company

Director General of Income Tax (investigation) Pune & Ors. Vs. M/s. Spacewood Furnishers Pvt. Ltd. & Ors.

Dalmia Cement Ltd., Rajasthan Vs. Commissioner of Income Tax, New Delhi

Director of Income Tax, New Delhi Vs. M/s Mitsubishi Corporation