Outotec Gmbh vs Deputy Commissioner Of Income Tax,

The Court : These three matters are somewhat similar and have been taken up together. The principal issue that arises herein is whether there is any

liability to pay advance tax or any consequential imposition of interest for default in payment of advance tax in a case where the entire applicable tax

is deductible at source from the income.

In ITAT No.143 of 2015 and ITAT No.148 of 2015, the question arises in the context of the provision of interest under Section 234B of the Income

TaxAct, 1961. In ITAT No.149 of 2015, the question arises in the context of both Section 234B and Section 234C of the Act.

The other grounds sought to be urged by the appellant is whether the Appellate Tribunal could have skirted the main issue and held that charging of

interest was consequential when the contention of the assessee was that it was not liable to pay any advance tax at all.

In course of the matter being considered, it has been revealed by the parties that a judgment rendered by the Delhi High Court reported at 373 ITR 65

(DIT vs. GE Packaged Power Inc), where the same issue was addressed, has been carried by the Revenue to the Supreme Court. In such view of

the matter, the three appeals are admitted on the following principal question:

“In a case where the entirety of the applicable tax is deductible at source from the income, whether there is any liability to pay advance tax under

Section 208 read with Section 209 of the Income Tax Act, 1961 and whether the provisions for charging interest under Section 234B or 234C of the

Act are attracted in such a situation?â€​

The appellant will prepare the requisite number of paper-books within eight weeks from date and forward copies thereof to Advocate for the

Revenue. The appeals will appear for hearing in the monthly list of November, 2018 with liberty to the parties to mention for an earlier disposal in the

event the legal issue is decided by the Supreme Court. GA No.3520 of 2015, GA No.3564 of 2015 and GA No.3565 of 2015 stand disposed of without

any order as to costs.