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2019 (3) TMI 229 - AT - Income TaxTDS u/s 194C OR u/s 194I - TDS deducted on amount paid / credited to Bihar State Warehousing Corporation as per certificate issued 197 - TDS deducted on rent of warehouse u/s 194I and towards contract receipt on account of handling and transportation charges and rake handling charges u/s 194C - HELD THAT:- D. R. did not bring out any facts whereby it can be shown or demonstrated that after issuance of certificate u/s 197 the Department has again cancelled it. In absence of such action, the rates prescribed in the certificate issued u/s 197 of the Act, the deductor or the person responsible for paying has to apply the rates as per that certificate as provided u/s 197 clause (2) of the Act. We further find the learned CIT(A) is absolutely silent upon the applicability of section 197 where he has not at all adjudicated on merits with regard to why in all cases of deduction only 194I will be applicable. The learned CIT(A) has summarily accepted the version of the Income Tax Officer (TDS). The assessee has deducted TDS as per the direction of the Department in form of section 197 certificate issued by the revenue authorities. It is not disputed by the Department. The relevant returns have already been filed. There is no default in paying of taxes and 6 therefore, there is no loss to the Revenue. Even the deductee has filed their returns and the tax effect clearly complied with. Reading provisions of section 197(1) and (2) together the action of the Assessing Officer is unjustified and the addition thereof acquires the nature of being arbitrary, unjudicious, perverse and bad in law therefore, liable to be deleted. We set aside the order of learned CIT(A) on these issues and allow the appeal of the assessee.
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