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2017 (1) TMI 669 - AT - Income TaxDeduction of withholding tax u/s 195 - non-resident not having PAN - lower rate on payment made to non-resident for quarter 1st of Asst. Year 2001-12 - CIT(A) confirming the action of AO for applying TDS deduction @ 20% as per provisions of section 206A as against TDS deducted by assessee @ 11.33% covered u/s 115A(10(b) - Held that:- Respectfully following the decision of Co-ordinate Bench in the case of Alembic Ltd. vs. ITO (2017 (1) TMI 635 - ITAT AHMEDABAD) and we find that in the case of assessee also payment was made towards fees for technical services to non-resident M/s Honeywell, USA not having PAN through banking channel as approved by RBI and the payment is well covered under the provisions of section 115A(1)(b) of the Act and therefore, special rate of TDS i.e. 11.33% was applicable and was rightly deducted and deposited by the assessee and the provisions of section 206AA of the Act cannot be made applicable to this payment. We, therefore, set aside the order of ld. CIT(A), delete the claim towards short deduction and allow ground no.1 of assessee. Levying of interest u/s 201(1A) of the Act is consequential in nature.
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