TaxTMI 
TaxTMI 
2023 (2) TMI 904
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....after referred as 'the Act') by the Id Assessing Officer, CPC-TDS, Vaishali, Ghaziabad (hereinafter referred as the Ld. AO 2. The facts in brief are that the assessee's return was processed and intimation u/s 200A was issued raising a demand on account of short deduction of the taxes. The assessee had made certain payments in the nature of fees for technical services to non residents and other income of non-resident and filed e-TDS quarterly statement in Form 27Q for relevant Financial year. The ld AO(TDS), CPC, Ghaziabad through automatic system held that the assessee is liable for deduction of tax at higher rate for want of Permanent Account Number of the concerned non-resident payees as per the provisions of section 206A of the ....
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....e, provisions of law and judicial propositions the Ld. CIT(A) grossly erred in concluding that the section 206AA of the I.T Act, 1961 overrides provisions of section 90(2) applicable to non residents of the foreign country with whom DTAAS were signed. 2.That having regard to the facts of the case, provisions of law and judicial propositions the Ld. CIT(A) grossly erred in ignoring the decision of the Delhi High Court in the case of Danisco India (P) Ltd Vs. UOI (2018) 404 ITR 539 (Del.HC), in which it was held that section 206AA of the Act does not override the provisions of section 90(2) of the Act and that in case of payments made to non residents, the rate of tax to be applied as prescribed under the DTAA and not as per section 206AA o....
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....ies below, here in appeal the claim cannot be raised. 7. Giving thoughtful consideration to the matter on record and the submission it comes up that there is no dispute to the fact that all the payments were made to the non resident of the countries with whom there are DTAA agreement by India. There is no dispute to the fact that the assessee had applied rate at lower level while the ld AO had applied higher rates as per Act considering appellant to be assessee in default. The order of the ld CIT(A) shows that the judgment of Hon'ble Delhi High Court in case of Danisco India Pvt. Ltd Vs. UOI (supra) wherein, Pune Tribunal in case of Dy. CIT Vs. Serum Institute of India (supra) was reproduced at page 11 to 14 of the order. Further witho....
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....fact, in the context of section 195 of the Act also, the Hon'ble Supreme Court in the case of CIT vs. Eli Lily & Co., (2009) 312 ITR 225 (SC) observed that the provisions of tax withholding i.e. section 195 of the Act would apply only to sums which are otherwise chargeable to tax under the Act. The Hon'ble Supreme Court in the case of GE India Technology Centre Pvt. Ltd. vs. CIT, (2010) 327 ITR 456 (SC) held that the provisions of DTAAs along with the sections 4, 5, 9, 90 & 91 of the Act are relevant while applying the provisions of tax deduction at source. Therefore, in view of the aforesaid schematic interpretation of the Act, section 206AA of the Act cannot be understood to override the charging sections 4 and 5 of the Act. Thus,....