TaxTMI 
TaxTMI 
2019 (3) TMI 229
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.... 25/06/2013. At the time of hearing Learned A. R. of the assessee invited our attention that in the first round of appeal the I.T.A.T. had inadvertently omitted to decide grounds of appeal No. 11 & 12 of the grounds of appeal. Thereafter, Misc. Applications No.153 and 154/Lkw/2015 were preferred by the assessee which were allowed by the I.T.A.T. recalling the order to the extent of these two grounds i.e. ground No. 11 & 12 which were not adjudicated upon in the order passed dated 25/06/2013. The ground No. 11 & 12 are: 2 "Ground No. 11 - On the facts and circumstances of the case and in law, Ld. CIT(A) erred in holding the entire amount paid / credited as per Form 16A issued to Bihar State Warehousing Corporation as rent & thus hol....
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....isdiction of the officers to issue certificate u/s 197 of the Act that the certificate dated 01/08/2007 was issued by the DCIT, Circle02 (the Assessing Officer of Bihar State Warehousing Corporation, Panta) and the certificate dated 27/10/2008 was issued by the ACIT (TDS). That in effect u/s 197 of the Act certificates were issued by the Revenue authorities to the assessee directing the rate at which the TDS were to be deducted. In 3 financial year 2006-07 relevant to assessment year 2007-08 the DCIT, Patna had issued a general certificate of low TDS dated 29/06/2006 on the application made by Bihar State Warehousing Corporation u/s 197(1) of the Act for deduction of TDS @5% in case of payment of rent u/s 194I and @0.5% in case of payment b....
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.... that the deductee had paid all taxes as per its return of income (copy of assessment order annexed as A-8 in the paper book) and also despite the fact that specific rates of deduction mentioned in that certificate, the Income Tax Officer (TDS) held the assessee in default for tax u/s 201(1) in regard to short deduction of tax on the entire payments made to Bihar State Warehousing Corporation on the presumed liability u/s 194I of the Act and charged consequential interest. Since according to the ITO (TDS) all the payments including handling and transport charges and rake handling charges on account of rent liable for TDS deduction u/s 194I regardless of its treatment as contract receipts liable to TDS u/s 194C as per certificate u/s 197 of ....
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....on 197 of the Act, it authorizes the Assessing Officer to prescribe deduction of TDS at any lower rate provided the facts and circumstances justify such deduction. Clause (2) of section 197 of the Act further states that when such certificate is given, the person responsible for paying the income shall, until such certificate is cancelled by the Assessing Officer, deduct income tax at the rates specified in such certificate or deduct no tax, as the case may be. In this case of the assessee, we find in the paper book a chart is annexed where the assessee has deducted the rates as provided to them by the certificate issued by the revenue authorities u/s 197 of the Act. The relevant certificate for assessment year 2008-09 and 2009-10 are annex....