(M.R. Shah and C.T. Ravikumar, JJ.)
Civil Appeal No(s). 5088/2011, decided on March 23, 2023
Van Oord Acz India Pvt. Ltd. ______________________ Appellant;
v.
Commissioner of Income Tax-VI, New Delhi ________ Respondent.
With
Civil Appeal No(s). 5089/2011
SLP(C) No. 10479/2012
Civil Appeal No(s). 5088/2011; Civil Appeal No(s). 5089/2011; and SLP(C) No. 10479/2012
The Order of the court was delivered by
Order
1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 15.03.2010 passed by the High Court of Delhi at New Delhi passed in ITA No. 439 of 2008, both, the Revenue as well as the assessees have preferred the present appeals.
2. We have heard Shri Arijit Prasad, learned Senior Counsel appearing on behalf of the Revenue and Shri Ajay Vohra, learned Senior Counsel appearing on behalf of the assessees.
3. Now, so far as the appeal preferred by the Revenue is concerned, in view of the fact that it has been specifically found that the assessees in the present case (company in India) is held to be not liable to deduct the tax at source, no interference of this Court is called for against the impugned judgment and order passed by the High Court. However, the question of law, if any, on interpretation of Section 195 is kept open.
4. Now, so far as the appeals preferred by the assessees are concerned, the assessees are aggrieved by that part of the observation made by the High Court in the impugned judgment by which the High Court has observed that as the assessment proceedings in the case of foreign company-Van Oard ACZ Marine Contractors BV (VOAMC) are reopened and therefore if the final view taken is that the VOAMC is assessable to tax, the assessees herein would also be treated as assessee in default, which would attract the consequences provided under Section 40(a)(i) of the Income Tax Act is concerned, once the assessees herein are held to be not liable to deduct the tax at source at all merely because subsequently the foreign company VOAMC is held liable to be taxed in India, the assessees herein cannot be treated as assessees in default. Even the aforesaid is on surmises and conjectures. Whatever the consequences on the pending proceedings against or initiated by VOAMC pending in the Madras High Court, the necessary consequences shall follow. However, at present the observations made in paragraph 25 of the impugned judgment and order that in case the assessment proceedings in VOAMC which are reopened are held to be against the VOAMC and VOAMC is liable to be taxed in India, the assessees herein would also be treated as assessees in default, the same is hereby quashed and set aside with the above observations. The present appeals preferred by the assessees are hereby allowed to the aforesaid extent. There shall be no order as to costs.
SLP(C) No. 10479/2012
5. In view of the disposal of CA No. 5089 of 2011, the present SLP(C) No. 10479/2012 stand disposed of.
6. Pending application(s), if any, stand disposed of.
———
