DIRECTOR OF I.T NEW DELHI vs M/S MITSUBHISHI CORP.

The Supreme Court addressed the issue of an assessee's liability to pay interest on short payment of advance tax due to the payer's failure to deduct tax at source under the Income-tax Act, 1961. The court examined the applicability of provisions under the Double Taxation Avoidance Agreement between India and Japan. Ultimately, it upheld the assessment order, affirming the Department's stance that the income attributable to the assessee's operations in India was taxable, thereby confirming the levy of interest under Section 234B.