Case Law Details
Director of Income Tax Vs Mitsubishi Corporation (Supreme Court of India)
1. In the judgment delivered by the Supreme court today on chargeability of interest u/s 234B it is held that prior to the financial year 2012-13, the amount of income-tax which is deductible or collectible at source can be reduced by the assessee while calculating advance tax.
2. The position has changed since the financial year 2012-13, in view of the proviso to Section 209(1)(d), pursuant to which if the assessee receives any amount, including the tax deductible at source on such amount, the assessee cannot reduce such tax while computing its advance tax liability.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
The conundrum before this Court concerns the liability of an assessee to pay interest on short payment of advance tax due to default of the payer in not deducting tax at the time of payment, under the provisions of the Income-tax Act, 1961 (hereinafter referred to as the “Act”). The facts giving rise to Civil Appeal No. 1262 of 2016 are referred to herein, for the sake of convenience.
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Whether Firms are exampt or relaxation under section 234B of income tax act