In Both Appeals v. M/S. Linklaters

bsb IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 2111 OF 2011ALONG WITH INCOME TAX APPEAL NO. 2112 OF 2011 The Director of Income Tax-IT … Appellant in both appeals. v/s M/s. LINKLATERS … Respondentin both appeals. Mr.Arvind Pinto for the appellant in both appeals. Mr.J.D. Mistry, senior advocate with Mr.Anay Banhatti and Ms.Sweta Rajan i/by Madhur R. Baya for the respondent in both appeals. CORAM: S.C. DHARMADHIKARI & G.S. KULKARNI, JJ. DATED : 30TH APRIL, 2014 P. C. : 1The revenue's appeals for the assessment years 2002-2003 and 2003-2004 challenging the order passed by the Commissioner of Income Tax (Appeals) dated 28[th] February, 2008 have been dismissed by the Income Tax Appellate Tribunal by the impugned order dated 27[th] December, 2010. under Section 234B of the Income Tax Act as the tax was deductible at source according to the revenue and that was the issue raised in the appeal before the Income Tax Appellate Tribunal. The Tribunal having dismissed the appeals, these further appeals to this Court under Section 260A of the Income Tax Act, 1961 are filed. 3The only question of law raised in these appeals relates to alleged failure to deduct tax at source and, therefore, interest is leviable thereon under Section 234B of the Act. 4In the case of the Director of Income Tax (International Taxation) v/s NGC Network Asia LLC, reported in (2009) 313 ITR 187 (Bom), a Division Bench of this Court took the view that on this alleged failure by the payer to deduct tax at source, interest cannot be imposed on assessee under Section 234B of the Income Tax Act, 1961. The point mentioned being squarely answered in favour of the assessee and against the revenue, the present appeals do not raise any substantial question of law. They are accordingly dismissed. (G.S. KULKARNI, J.) (S.C.DHARMADHIKARI, J.) ITXA2111-2112.11