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2017 (2) TMI 642 - AT - Income TaxHigher rate of TDS @20% for non-furnishing of PAN - proceedings under section 200A - whether cannot be at a rate prescribed u/s 206AA which is higher than the rate at which the relevant income is chargeable to tax under Act or DTAA - DTAA between India and GermanyHeld that:- As decided in the case of Infosys BPO Ltd [2015 (9) TMI 792 - ITAT BANGALORE ] in which it was held that the provisions of IT Act, 1961 cannot override the provisions of DTAA. We noticed that the assessee had deducted the tax at source at the rates prescribed in respective DTAAs between India and Germany at the prescribed rate of 10%. We have also considered that, where the tax has been deducted on the strength of the beneficial provisions of DTAAs, in that case, the provisions of section 206AA of the act cannot be invoked because section 90(2) of the act provides that the provisions of the act shall apply to the extent they are more beneficial to the assessee. In view of the above stated facts and legal findings, in our considered opinion the ld. CIT(A) has not substantiated the sustaining of impugned demand raised by the assessing officer ,therefore, we allow the appeal of the assessee.
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