2020 (4) TMI 480

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....(A)-10, Bangalore in which dispute relates to the demand for short deduction of tax made by the AO relating to Tax Deduction at Source (TDS) returns relating to (Q=Quarter)Q-2, Q-3 & Q-4 of FY 2010-11. ITA Nos.2273 to 2278(B)/2019 are appeals against common order dated 27-08-2019 of CIT(A)-10, Bangalore and these appeals arise out of the demand for short deduction of tax at source in relation to return of Tax Deduction at Source (TDS) in relation to Q-1, to 3 of Assessment Year 2012-13 and Q-1 & Q-2 and Q-4 of Assessment Year 2013-14. 3. As far as ITA No.2270 to 2272 (B)/2019 the facts are that the assessee filed return of income TDS for Q-2 to Q-4 of FY 2010-11 (AY:2011-12) on 06-06-2011. The TDS return were in respect of TDS payment ma....

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....see did not furnish Permanent Account Number (PAN) of non-resident with the Income Tax Department, Government of India, to whom the payments were made, the ACIT-CPC, TDS applied the provisions of sec.206AA of the Income Tax Act, 1961 (Act) which provides that if the PAN of the non-resident is not mentioned in the TDS return and the payee is a non-resident then the rate at which the TDS is to be effected is 20%, as against the lesser/normal rate of TDS as per the provisions of the DTAA between India and the country of which the recipient of the payments are tax residents and hence the demand for short deduction of tax at source. 5. The assessee filed appeal against the intimation u/s 154 of the Act dated 11-03-2018 for Q-3 & 4 of AY 2011-....

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....2.12.2011 Q-2 of AY 2012-13 - do- : 22.12.2011 Q-3 of AY 2012-13 - do- : 16.02.2012 Q-1 of AY 2013-14 -do- : 25.02.2013 Q-2 of AY 2013-14 -do- : 25.02.2013 Q-4 of AY 2013-14 -do- : 25.02.2013 8. While processing the TDS returns electronically, the ACIT, CPC-TDS, Centralized Processing Cell (CPC) did not apply the higher rate of tax as per the provisions of Sec.206-AA of the Act. However by orders passed u/s.154 of the Act dated 11.3.2018 for Q1 to Q-3 of AY 2012-13 and order dated 15.03.2018 and 10.3.2018 and 10.3.2018 respectively for Q-1, Q-2 and Q-4 of AY 2013-14, the ACIT, CPC-TDS applied higher rate of tax as he found that the tax deducted by the assessee at source was at a lesser rate as....

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....n the grounds of appeal are common and that is: (i) While processing the return of TDS u/s 200A of the Act the CPC cannot make any additions on issues which are debatable and the CPC can only correct errors which are apparent from the records and therefore, the CPC were not justified in holding that the rates prescribed u/s 206AA of the Act should be applied. (ii) The Beneficial provisions of DTAA will prevail over the provisions of sec.206AA of the Act. 12. The learned counsel for the Assessee reiterated the stand of the Assessee as put forth before the revenue authorities. The ld.DR relied on the orders of ld.CIT(A). 13. We have carefully considered the rival stand of the Assessee and the revenue on the issue in th....