TMI Blog2016 (1) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... cable. Held that:- If the recipient has no taxable income in India then the question of deduction of tax may not arise for the year under consideration. In that case, there is no question of deduction of tax either @ 10% or @ 20%. When the income received by a resident or non-resident, as the case may be, is taxable in India, tax has to be deducted under the provisions of Chapter XVII of the Act. Sec. 206AA of the Act also falls in Chapter XVII. In view of the specific provision in sec. 206AA which provides for deduction of tax @ 20% wherever the recipient failed to furnish the Permanent Account Number, this Tribunal is of the considered opinion that in view of the language used by the Parliament “notwithstanding anything contained in an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pient In-Vitro Ltd., Australia and M/s Down Under Fertility Services Pty. Ltd., Australia, deputed their personnel for providing the services. The assessee has also made payments to M/s Sapient In-Vitro Ltd., Australia and M/s Down Under Fertility Services Pty. Ltd., Australia after deducting tax @ 10%. However, the Assessing Officer treated the assessee as an assessee in default on the ground that the assessee has not produced the Permanent Account Number of the recipients for deducting tax @ 10%. In the absence of any Permanent Account Number, the Assessing Officer found that the assessee ought to have deducted tax @ 20%. Referring to section 139A of the Act, the ld. Representative submitted that sec. 139(8)(d) of the Act empowers the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exempting from getting Permanent Account Number. Therefore, sec. 139A(8) r.w.rule 114C would prevail over sec. 206AA of the Act. The ld. Representative further submitted that the non-resident recipients, in fact, obtained the Permanent Account Number on 27.2.2013 during the same financial year. According to the ld. Representative, Permanent Account Number was not available only for a part of the year under consideration. The ld. Representative further submitted that while considering sec. ,206AA of the Act to non-residents, the provisions of sec. 139A(8)(d) cannot be ignored. When sec.139A(8)(d) of the Act exempts the nonresidents from obtaining Permanent Account Number, the same cannot be furnished to the deductor as required u/s 206AA of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9A r.w.rule 114C. Therefore, there is no question of deduction of tax @ 20%. Even otherwise, in the very same financial year i.e on 27.2.2013, the non-residents obtained the Permanent Account Number. Therefore, at any stretch of imagination, the assessee cannot be treated as an assessee in default . 6. On the contrary, Shri A.V.Sreekanth, Ld. Departmental Representative submitted that admittedly, the assessee paid fee for technical services to non-resident companies at Australia. It is also an admitted fact that the employees of the non-resident companies provided technical services in the laboratory of the assessee-hospital in India. Therefore, the income received by the non-resident companies is taxable in India. Hence, the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for technical services to Australian companies for providing technical services in India. It is also an admitted fact that the Australian Companies deputed their employees to India for providing the technical services. It is also not in dispute that the payment made by the assessee to the non-resident companies is taxable in India. In fact, the assessee has deducted tax @ 10%. Now the question arises for consideration is applicability of sec. 206AA of the Act. 9. We have gone through the provisions of sec. 206AA of the Act which reads as follows: 206AA-REQUIREMENT TO FURNISH PERMANENT ACCOUNT NUMBER (1) Notwithstanding anything contained in any other provisions of this Act, any person entitled to receive any sum or income or amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in any other provisions of this Act , sec.206AA would override the other provisions of the Income-tax Act, including sec.139A of the Act. Since admittedly the amount received by the recipient is taxable in India, this Tribunal is of the considered opinion that in the absence of any Permanent Account Number, tax has to be necessarily deducted @ 20%. Therefore, the CIT(A) has rightly confirmed the order of the Assessing Officer treating the assessee as an assessee in default . We do not find any infirmity in the order of the CIT(A) and accordingly the same is confirmed. 11. In the result, all the three appeals of the assessee are dismissed. Order pronounced in the open court on 15th October,2015, at Chennai. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
