COMMISSIONER OF INCOME TAX Vs. ONGC

JUDGEMENT

(1.) THIS is an appeal against the judgment and order -dated 22.07.1999, passed by the Income Tax Appellate Tribunal, (Delhi Bench 4E' Delhi) in ITA No.7288/Del/1992.

(2.) THE substantial questions of law raised in the appeal are as follows:

(3.) WE have heard learned Counsel for the parties and perused the judgments given by the courts below. In the facts and circumstances of the case, after having gone through the order passed by the Commissioner of Income Tax as well as also the impugned order of the Income Tax Appellate Tribunal and in the light of the material available with us, we are of the view that the question of law raised for determination in the present case has already been concluded by the finding of fact and there appears to be no such substantial question of law to be answered by this Court. The Tribunal while relying on the judgments rendered by Calcutta High Court and Bombay High Court has rightly recorded a finding that the assessee cannot be saddled with the obligation to deduct tax at source when it was appointed as agent of the non -resident company. The Tribunal has rightly recorded the finding that since the assessee was appointed as agent of the non -resident for the assessment year 1986 -87, relevant to the previous year 1.10.1984 to 30.9.1985 and including the period of alleged default i.e. 28.10.1984 to 31.3.1985 and since the assessment was completed both under Sections 141A and 143(3) of the I.T. Act for both the tax protected and non -tax protected tax, the assessee was the agent of the non -resident company for both the years. Hence, the Tribunal rightly held that there was no reasonable clause for charging interest Under Section 201(1A) of the Act. Therefore, the Income Tax Appellate Tribunal has elaborately dealt with each and every ground raised in the appeal and we are in full agreement with the findings recorded by the learned Tribunal in its judgment. The findings recorded by the learned Tribunal are the findings of fact and do not call for any interference by this Court. Therefore, the questions raised in the application are accordingly decided in favour of the Assessee and against the Department.