In Brief
A non-resident foreign corporation claimed it was not liable for interest on short payment of advance tax when Indian payers failed to deduct tax at source. The Supreme Court held that prior to the 2012 amendment to Section 209(1)(d), assessees could reduce advance tax by the amount of tax 'deductible or collectible' at source, even if actual deduction did not occur. Therefore, the corporation had no advance tax liability and could not be charged interest under Section 234B. The Court rejected interpreting the statute in isolation, holding that the 2012 amendment—requiring payment even when tax was not deducted—confirms this pre-amendment interpretation. The Revenue retains remedies against defaulting payers under Section 201.
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