TaxTMI 
TaxTMI 
2020 (10) TMI 413
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....door advertising and related information consultancy. The return of income declaring total income of Rs. 5,16,68,760/- was filed by the assessee on 29.11.13. The return was processed u/s 143(1) of the Act and subsequently, the case was selected for scrutiny and notices u/s 143(2) and 142(1) were issued and served on the assessee. In response, AR of the assessee filed the relevant information as called for. 3. The assessee is engaged in providing outdoor advertising and related information consultancy. During the year under consideration, assessee declared income from business at Rs. 4,49,70,675/- and income from other sources such as interest income on IT refund and deposits shown at Rs. 66,98,082/-. The total taxable income shown at Rs.....
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....l payments made in that year. However, assessee received short deduction notice in F.Y. 2014-15 wherein, it was stated that due to having exceeded limit in lower deduction certificate, the assessee had to pay the shortfall of TDS along with interest. Therefore, the assessee paid the shortfall of Rs. 1,35,411/- alongwith interest of Rs. 40,623/- during the F.Y. 2014-15. The assessee submitted before Ld. CIT(A) that since there is no non-deduction of TDS, no disallowance can be made u/s 40(a)(ia) of the Act. In support of its arguments, assessee relied on the following decisions:- i) CIT vrs. S. K. Tekriwal (361 ITR 0432) ii) Dish TV India Ltd vrs. ACIT (2017) 60 ITR (T) 162 (Mum-Trib) iii) Three Star Granites (P) L....
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....sessee that the decision in these cases are applicable to the facts of the case of assessee. In all these cases relied by the assessee, the assessee had deducted the tax at source under one provision of the Act whereas the AO was of the view that the tax was required to be deducted in some other provisions of the Act at a higher rate. In these circumstances, the Hon'ble Courts/Tribunals were of the opinion that it was a bona fide case of mistake on part of the appellant because the appellant was of the belief that tax was deductible under same provisions of the Act under which it was deducted. Since the case of the appellant was bona fide, it was held that no disallowance was called for under section 40(a)(ia) of the Act because it was not ....
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.... be made u/s. 40(a)(ia) of the Act. It is humbly prayed that the reliefs as prayed and such other and further reliefs as may be justified by the facts and circumstances of the case and as may meet the ends of justice, should be granted. The appellant craves leave to amend or alter any ground or add a new ground, which may be necessary. 12. At the time of hearing, Ld. AR appearing on behalf of the assessee brought to our notice the certificate issued u/s 197 of the Act which is placed at page no. 4 of the paper book. As per the certificate, assessee was supposed to deduct the tax @ 0.1% up to the value of Rs. 7,51,10,831/- approved in the name of Portland India Outdoor Advertising Pvt. Ltd. (old name of the assessee). ....
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....he case of Tata Communications Ltd. Vrs. DCIT (ITA No. 7084 & 7085/Mum/2017). 13. On the other hand, Ld. DR relied on the orders passed by the revenue authorities. 14. Considered the rival submission and material placed on record. We notice from the record that assessee had made the payment to M/s Times Innovative Media Ltd to the extent of Rs. 8,22,37,744/- and deducted TDS @ 0.1%. However, we noticed that M/s Times Innovative Media Ltd has submitted the short deduction certification issued u/s 197 and as per the certificate, the approved limit of short deduction is Rs. 7,51,10,831/-, but assessee continued to deduct the tax at the concessional rate beyond the certificate limit of Rs. 7,51,10,831/- instead of deducting the TDS @ 2%. ....
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....ecified in the certificates issued in form no.13, r/w section 197(2) and rule 28AA, the assessee can be treated as assessee in default for short deduction of tax. In this regard, the specific contention of the assessee is, as per section 197 of the Act, the certificate to be issued by the Assessing Officer under sub-section (2) is person specific and not income specific. It is observed, the Tribunal, Kolkata Bench, in 21st Century Securities Ltd. (supra), after interpreting the provisions of section 197 of the Act as well as rule 28AA has held that neither under section 197 of the Act nor in rule 28AA, there is reference to any income to be specified in the certificate to be issued for deduction of tax at lower rate. The Tribunal has held t....