Director Of Income Tax (International Taxation v. Toyo Engineering Corporation

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.664 OF 2011 Director of Income Tax (International Taxation)..Appellant. Versus Toyo Engineering Corporation ..Respondent. Mr.Suresh Kumar for the appellant.Mr.Madhur Agarwal i/by Mint & Confreres for the respondent. CORAM : J.P. Devadhar &M.S. Sanklecha, JJ. DATE : 23[rd] January 2013 P.C. : 1.In this appeal by the Revenue, following questions of law have been formulated for our consideration. “a)Whether on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the profit arising on the offshore supply contract to MRPL cannot be taxed in India under the provision of Section 9 of the Income Tax Act, 1961 ? b)Whether, on the facts and circumstances of the case, the Tribunal was correct in law in deletint interest under Section 234B of the Act on the ground that when duty is cast on the payer to pay tax at source, on failure on part of the payee, no interest under Section 234B can be imposed on the payee assessee ignoring the fact that it is the liability of the payee to pay advance tax even on the amount which had not been deducted at source under Section 195 of the Income Tax Act, 1961 ?” 2.So far as question (a) is concerned, counsel on both the sides state that the said issue is covered by the decision of this Court in the assessee's own case in Income Tax Appeal No.663 of 2011 rendered today i.e. 23[rd] January 2013. Accordingly, no occasion to entertain question (a) arises. 3.So far as question (b) is concerned, counsel on both the sides state that the said issue is covered by the decision of this Court in the case of Director of Income Tax (International Taxation) V/s. NGC Network Asia Limited reported in 313 ITR 187. Accordingly, question (b) cannot be entertained. 4.The appeal is accordingly dismissed with no order as to costs. (M.S. Sanklecha, J.) (J.P. Devadhar, J.)