2020 (2) TMI 711
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....9 for the Assessment Year 2012-13. Since facts and issues are common, clubbed and heard together and disposed of by way of this consolidated order. IT (IT) A No.313/2019 2. Facts of the case in brief are that assessee along with Sri Sanjeev Kumar Agarwal had purchased an immovable property of T.S.No. 1452/A1, admeasuring 357 sq.yds., D.No. 30-15-151, Dabagardens Main Road, Visakhapatnam from Sri Pulimi Narendra, Non-Resident for a consideration of Rs. 1.75 crores, but not deducted TDS, therefore show-cause notice was issued and subsequently order u/sec. 201(1) & 201(1A) dated 30/03/2018 was passed. Thereafter, the assessee filed an application dated 23/04/2018 for rectification of the order wherein he stated that NRI has filed his return....
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....any and even may be less than the actual tax liability of the non-resident company in a given case. Only the section 195(2) provides for a limited extent of a possible reduction in the actual amount to be deducted at source by the resident payer if the resident payer is able to demonstrate before the AO that the entire payment does not bear the character of income, but only a part of the payment bears the character of income. The only scope and the manner of reducing the obligation for deduction imposed on a resident payer in terms of sec. 195(1) is by the method of invoking the procedure contemplated under sub-sec. (2) of sec. 195. There is no such application u/s 195(2). Since the assessee failed to deduct tax at source at the time of cre....
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....ssing Officer by stating that NRI has offered the entire income for taxation by filing return of income before the Assessing Officer (International Taxation), Nellore and therefore treating the assessee is in default is not correct and requested to rectify the order. By considering the explanation of the assessee, the Assessing Officer is of the opinion that NRI has already filed his return of income by offering the income for taxation, therefore he rectified his order on 14/06/2018. We find that ld.Commissioner is not able to establish what the prejudice is caused to the Revenue in the rectification order passed by the Assessing Officer. To invoke section 263, both the conditions have to be fulfilled i.e. order passed by the Assessing Offi....