TMI Blog2019 (12) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... itting deduction of tax at source at lower rate. It is a fact on record, in these certificates issued in Form no.13, the Assessing Officer has specified the payment which is subject to deduction of tax at lower rate - Admittedly, the assessee has deducted tax at the rates specified in the certificates issued in Form no.13, for the entire payment made to the concerned parties during the year under consideration even in respect of payments made in excess of amount specified in Form no.13. The specific contention of the assessee is, as per section 197 of the Act, the certificate to be issued by the Assessing Officer under sub section (2) is person specific and not income specific - It is observed, the Tribunal, Kolkata Bench, in M/S. TWENTY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rders, both dated 21st September 2017, passed by the learned Commissioner of Income Tax (Appeals) 60, Mumbai, which in turn arise out of orders passed under section 201(1) and 201(1A) of the Income-tax Act, 1961 (for short the Act ), relating to the 2nd and 4 th quarter of the assessment year 2013 14. The grounds raised in both the appeals are identical except the figures. 2. At the outset, Shri Nitesh Joshi, learned Counsel for the assessee expressed his intention not to press ground no.1 in both the appeals. Accordingly, ground no.1 in both the appeals are dismissed. 3. In ground no.2, the assessee has challenged the demand raised under section 201(1) of the Act on account of short deduction of tax at sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority. 5. Learned Commissioner (Appeals) after considering the submissions of the assessee in the context of facts and material on record found that in the certificates issued under section 197(2) of the Act in respect of three payees allowing deduction of tax at lower rate the officer concerned has specified the amount which is subject to deduction of tax at lower rate. However, the assessee had continued to deduct tax at lower rate in respect of payment over and above the amount stipulated in the certificates issued under section 197(2) of the Act. Thus, learned Commissioner (Appeals) held that default on the part of the assessee in adhering to the amount specified in the certificates issued under section 197(2) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excess of the amount specified in the certificate issued in Form no.13 r/w section 197(2) of the Act, it cannot be treated as assessee in default to raise demand under section 201(1) / 201(1A) of the Act. In support of such contention, he relied upon the decision of the Tribunal, Kolkata Bench, in 21st Century Securities Ltd. v/s ITO, [2017] 78 taxmann.com 152 (Kol.). 7. The learned Departmental Representative strongly relied upon the observations of learned Commissioner (Appeals). 8. We have heard considered rival submissions and perused material on record. We have also carefully examined the decision relied upon by the learned Counsel for the assessee. Insofar as the factual aspect of the issue is concerned, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the 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. In our view, the aforesaid decision of the Co ordinate Bench squarely applies to the facts of the present case. In the absence of any contrary decision hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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