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2020 (10) TMI 413 - AT - Income TaxShort-deduction of tax at source - appellant while making payments had deducted lower tax in respect of part of the amount paid to the deductee - payments exceeding the amounts specified in the certificates issued in form no.13, r/w section 197(2) and rule 28AA - HELD THAT:- We notice from the record that assessee had made the payment to M/s Times Innovative Media Ltd to the extent of ₹ 8,22,37,744/- and deducted TDS @ 0.1%. M/s Times Innovative Media Ltd has submitted the short deduction certification issued u/s 197 and as per the certificate, the approved limit of short deduction is ₹ 7,51,10,831/-, but assessee continued to deduct the tax at the concessional rate beyond the certificate limit of ₹ 7,51,10,831/- instead of deducting the TDS @ 2%. In the subsequent financial year, assessee was brought to the notice of short deduction by the department and assessee has remitted the shortfall amount alongwith interest. However, AO and Ld. CIT(A) has sustained the disasllowance u/s 40(a)(ia) for the above said default on the part of the assessee. Since the facts of the case are similar to the facts of the case titled ‘Tata Communications Ltd. Vrs. DCIT’ [2019 (12) TMI 442 - ITAT MUMBAI] as held statutory provisions providing for deduction of tax at source at lower rate is person specific and cannot be extended to the amounts specified by the recipients of the payment while making application for grant of certificate in Form no.13, in terms of section 197 of the Act. Thus, the Tribunal has ultimately held that in such circumstances, if the assessee continues to deduct tax at the rate specified in the certificate, even, in respect of payment made over and above the sum specified in the certificate, it cannot be treated as assessee in default for short deduction of tax. - Decided in favour of assessee.
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