Description:
Assessee’s entire income subject to TDS, no liability to pay interest under section234B-Recent judgment to Full Bench of Uttarakhand High Court
In Director of IT, International Taxation v. Maersk Co. Ltd. (2011) 39 (I) ITCL 179 (Uttarakhand – HC) (FB) Maersk Co. Ltd. (for short ‘MCL’)
Now, it is settled principle of law that where it was the duty of the payer to deduct the tax at source, the assessee cannot be made liable to pay the interest under section 234B for default on the part of the payer who engaged or employed such assessee. The High Courts are in agreement with this view.
Source:
1. www.tpcc.in.
2.The Tax Referencer .Volume120. Issue No.2, 11 July 2011 Page No.36 & 38.
Our Comment:
Failure of the payer to make TDS, The assessee is not liable to pay Interest U/s 234B.
