DIRECTOR OF INCOME TAX, NEW DELHI v. M/s MITSUBISHI CORPORATION

#5. This does not find force in the contention of the Revenue that Section 234B should be read in isolation without reference to the other provisions of Chapter XVII. The liability for payment of interest as provided in Section 234B is for default in payment of advance tax. While the definition of “assessed tax” under Section 234B pertains to tax deducted or collected at source, the pre-conditions of Section 234B, viz. liability to pay advance tax and non-payment or short payment of such tax, have to be satisfied, after which interest can be levied taking into account the assessed tax. Therefore, Section 209 of the Act which relates to the computation of advance tax payable by the assessee cannot be ignored while construing the contents of Section 234B. As this Court has already 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, the Respondent cannot be held to have defaulted in payment of its advance tax liability. This Court upholds the view adopted in the impugned judgment of the Delhi High Court in Civil Appeal No. 1262 of 2016 aswell as by the Madras High Court in the Madras Fertilizers case, that the Revenue is not remediless and there are provisions in the Act enabling the Revenue to proceed against the payer who has defaulted in deducting tax at source. There is no doubt that 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. [Para 20][766-B-F]

#6. As this Court had dealt with the submissions relating to Section 209 and Section 234B of the Act, this Court does not deem it necessary to deal with other contentions that have been raised on behalf of the Revenue. Accordingly, the Appeals filed by the Revenue are dismissed. [Para 21, 22][766-G-H] A B C D E F G H 754 SUPREME COURT REPORTS [2021] 7 S.C.R. A B C D E F G H