TaxTMI 
TaxTMI 
2018 (2) TMI 106
X X X X Extracts X X X X
X X X X Extracts X X X X
....CIT (A) erred in not adjudicating on the applicability of section 115A of the Act on the payments made by the assessee to non-resident payees who did not have PAN? 2. Without prejudice to ground no.1, whether in facts and circumstances of the case and in law the Ld. CIT (A) erred in rejecting the rate of TDS (25%) applied by the AO as per section 115A of the Act, being the "rate specified in the relevant provision of the Act" within the meaning of clause (i) of the section 206AA of the Act, for payment made to entities located in DTAA countries while upholding the rate of 25% for payments made to entities located in non-DTAA countries? 3. Whether in facts and circumstances of the case and in law the Ld. CIT (A) erred in relying upon the decision of the Hon'ble ITAT, Pune in the case of DDIT vs. Serum Institute of India Pvt. Ltd. (2015) 56 Taxman.com 1] while ignoring the decision of the Hon'ble Banglore ITAT in the case of Bosch Ltd vs. ITO (2012) ITA No. 552 to 558 (Bang.) of 2011] in holding that assessee was entitled to a benefit under section 90(2) of the Act when the assessee itself had applied the provisions of section 206AA of the Act on the payment....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(1) and 201(1A) of the 1961 Act, the assessee filed an appeal before the learned CIT-A . The Ld. CIT-A after appreciating the contentions of the assessee passed the following order wherein directions were issued by learned CIT(A) to the AO to verify whether the assessee is entitled to the benefits under the respective DTAA's and whether the payees are tax residents of the respective countries, by holding as under vide appellate order dated 04-07-2016 passed by learned CIT(A) which is again a consolidated order for assessment year 2014-15 and 2015-16: " 5. I have considered the facts of the case and submissions of the assessee. Crux of the submissions is that assessee was bound to deduct tax at source at the rate of 20% which was the highest rate of tax applicable to non residents in view of the provisions of section 115A and 195 read with 206AA of I.T. Act, 1961 and Finance Act 2013/2014 since the double tax avoidance tax treaty was applicable to all the non- residents entities located in different countries like United Kingdom, Singapore, Hongkong and France. Prima facie it is assessee's contention that the rate of 25%, as per the I.T.Act, 1961 amended with effect fro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essee even during the assessment proceedings. Assessee has filed ten tax residency certificates of some of the assessees for F.Y.2013 and F.Y.2014 issued by the respective government authorities during the appellate proceedings and which indicate that some of the entities were residents of that state and this aspect needs review and revision since these certificates were not made available to the AO. Moreover, whether these entities were entitled to the benefits under the respective DTAAs or not also needs verification. 7. Prima facie it appears that assessee's contention for application of maximum rate of 20%, that is 22.66% under section 206AA read with section 115A and 195 of I.T. Act, 1961 and Finance Act,2013/2014 is correct subject to verification of records and tax residency certificates in respect of some of the entities as against the rate of 25%, that is, 25.75% invoked by the assessee which also appears to be erroneous since rate of ultimate tax after including surcharge will be 27.75%, that is 25.00% plus surcharges of 2.5% at the rate of 10% of tax deducted at source. Therefore it is held that the AO will verify the tax residency certificates issued by the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....09/2014 Atos Worldwide SA N.V France Corporate Fees 2,55,908 58,014 30/09/2014 Atos Worldwide SA N.V France Corporate Fees 2,48,561 56,349 30/09/2014 Atos Worldwide SA France Corporate Fees 7,32,506 1,66,059 30/09/2014 Atos Worldwide SA France Corporate Fees 2,87,848 65,255 30/09/2014 Atos Worldwide SA France Corporate Fees 2,68,016 60,760 30/09/2014 Atos Worldwide SA France Corporate Fees 40,79,599 10,38,666 31/10/2014 Atos Worldwide SA France Corporate Fees 53,24,063 13,55,548 31/10/2014 Atos Worldwide SA France Corporate Fees 1,97,50,768 44,77,499 30/11/2014 The assessee had deducted income-tax at source @ 22.66% on the above foreign remittances to non-residents who are not holding PAN allotted by Department. It is the contention of the Revenue that as per provisions of Section 206AA, the income-tax is to be deducted at source @ 25.75% as stipulated u/s. 115A of the 1961 Act and not at the rate of 20% as the payees have not furnished their income-tax PAN. India has entere....