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2017 (3) TMI 1880 - AT - Income TaxShort deduction of TDS and interest on short deduction - assessee has deducted TDS @ 10% on deposits instead @20% due to clerical mistake - HELD THAT:- As decided in M/S. HINDUSTAN COCA COLA BEVERAGE PVT. LTD VERSUS COMMISSIONER OF INCOME TAX [2007 (8) TMI 12 - SUPREME COURT] when the tax has been paid by the deductee-assessee, the tax could not be recovered once again from the assessee. It is the claim of the assessee society that the deductee has paid the taxes , hence, the assessee is not liable to be for demand on account of short deduction of TDS. However, this claim is not fully verified by the lower authorities. Therefore, in the interest of justice and fair play, this issue is restored back to the file of AO with the direction that the AO shall verify whether the short deduction on account of low rate of TDS has been paid by the payee / deductee/ recipient and they have shown the receipt in the their return of income. If that be so , no demand on account of short deduction can be claimed from the assessee. All these facts require verification at the end of AO. The assessee is also directed to cooperate with the AO and must produce all the relevant evidences before the AO. The AO is further directed to verify the same and decide the matter afresh keeping in mind the decision of Hon'ble Supreme Court cited supra and CBDT Circular F. No. 275/201/95-IT(B) dtd. 29.01.1997. Accordingly, all the grounds of appeal are allowed for statistical purposes.
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