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TMI Blog2020 (12) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... 961 [hereinafter referred to as the 'Act'], effective from 1st April, 2019 for Financial Year [hereinafter referred to as 'FY'] 2019-20. 2. Mr. Vishal Kalra, learned counsel for the Petitioner submits that the Petitioner is engaged in the business of operating aircraft in international traffic and its revenue/income in relation to its international air traffic to and from India is derived from ticket sales and cargo traffic. As its income/profits are not chargeable to tax under Article 8 of India-UK DTAA r/w Section 90(2) of the Act, the Petitioner requested for nil rate of withholding tax. Mr. Kalra further submits that starting from the calendar year in question, the TDS Reconciliation, Analysis and Correction Enabling System [hereinafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. The certificate for the said application was issued by the AO on 13th June, 2019. Thereafter Petitioner made applications in a similar manner on 14th June, 2019, 2nd July, 2019 and 10th July, 2019 for which the certificates were issued on 2nd July, 2019 and 7th August, 2019 respectively. During this period the Petitioner continuously followed up with the officer of the Centralized Processing Cell, TRACES Customer care, explaining the challenges faced. Ultimately, the CPC, taking note of similar representations made by several assessees, resolved the issue in the system. Taking benefit of the upgradation, the Petitioner filed four applications dated 10th July, 2019 for 180 parties. The certificate for the balance 230 parties was issued o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is that the withholding tax certificate issued to the petitioner has been made effective from the date of issue and not from the beginning of the financial year i.e. 01.04.2019. For example, it is pointed out that one of the certificates placed at page 61 of the record has been made effective from 13.06.2019 whereas the same had been applied for financial year 2019-20. Counsel for the petitioner states that for other jurisdictions, necessary clarifications have been issued by the respondents themselves. XX XX XX XX " 5. On 7th January, 2020, after taking note of the contentions of the parties, the Court passed the following order: "1. On the last date, Mr. Bhatia, learned se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nic system initially did not permit making an application in respect of more than three parties. He seeks further time to take instructions in this regard. He states that in view of the impending union budget, four weeks' time be granted to file reply. 5. The petitioner has placed on record the lower withholding tax certificate issued in respect of the financial year 2018-19. We find that the parties to whom the lower withholding tax certificates were issued for the financial year 2018-19 are the same. In a matter like the present one, time is of the essence since the petitioner is being subjected to higher deduction of tax at source by the parties which are transacting in business, while its claim is for lower withholding tax. The petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 in the case of British Airways PLC Vs. Income Tax Officer & Ors. - reg Ref:-1) F.No. ITO/Ward(1)(2)/2019-20/180 dated 06.02.2020. Kindly refer to the subject cited above. 2. I am directed to refer to the above mentioned letter on the subject matter and forward comment as under Applicant's Grounds Comments 1. Till late March, 2019 the online system known as TRACES was practically not working. The taxpayers at large were not able to apply online for issuance of lower withholding certificate. The online Form-13 functionality (for Lower/Nil Deduction Certificate) was deployed on website (TRACES) on 12.11.2018 and has been working properly without any major downtime. Besides, it is to highlight that total 8366 Form-13 were recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable functionality applicant needs to furnish the details of transaction and TAN in the online Form-13. The applicant filed the details in Annexure-I of Form 13 and attached the list of TANs alongwith other documents in Form 13. The applicant did not opt for the offline utility mode which was applicable as per the procedure for more than 50 TANs. This issues with the approval of CIT(CPC-TDS). Encl: As above" 8. During the course of the arguments, Mr. Bhatia, learned senior standing counsel, relying on the aforesaid communication, submitted that the Petitioner had the option of both online mode and offline mode to submit Form No-13 along with the supporting documents. The Petitioner ought to have availed the offline utility mode which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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