TMI Blog2017 (3) TMI 1880X X X X Extracts X X X X X X X X Extracts X X X X ..... rest of justice and fair play, this issue is restored back to the file of AO with the direction that the AO shall verify whether the short deduction on account of low rate of TDS has been paid by the payee / deductee/ recipient and they have shown the receipt in the their return of income. If that be so , no demand on account of short deduction can be claimed from the assessee. All these facts require verification at the end of AO. The assessee is also directed to cooperate with the AO and must produce all the relevant evidences before the AO. The AO is further directed to verify the same and decide the matter afresh keeping in mind the decision of Hon'ble Supreme Court cited supra and CBDT Circular F. No. 275/201/95-IT(B) dtd. 29.01 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d vs. CIT, (2007) 293 ITR 226 (SC) / [2007] 163 Taxman 355 (SC) and CBDT Circular issued under F. No.275/201/95-IT(B) dtd. 29.01.1997. 3. Brief facts of the case are that the assessee is a nationalized bank, which was required to deduct TDS on the stipulated rate and deposit the same in the Govt. account on corporation deposits. The assessee has deducted TDS @ 10% on deposits from M/s. Jagran Publication Pvt. Ltd. and M/s. Madhya Pradesh Trade Investment Corporation instead @20% due to clerical mistake. Thus, the AO noted that the assessee was required to deduct TDS @ 20%. Therefore, the Assessing Officer raised the aforesaid demand on account of short deduction of TDS and interest on short deduction. 4. Against this, the assessee fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as filed before the CIT(A) in which it was claimed that the deductee has paid the due taxes thereon and shown as their income. However, the Ld. CIT (A) has not accepted the same on the ground the complete details of payee were not submitted. 6. On the other hand, the learned Sr. DR relied upon the orders of the authorities below. 7. We have considered the rival submissions of the parties. We find that the issue is covered by decision of Hon`ble Supreme Court in the case of Hindustan Coca Cola Beverage (P) Limited vs. CIT, (2007) 293 ITR 226 (SC) / [2007] 163 Taxman 355 (SC) wherein findings given by Hon`ble Supreme Court are as under: Facts The assessee was engaged in the manufacture and sale of soft drinks. It entered into an ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... constituted a rectifiable mistake under section 254(2) and, he, accordingly, recalled its earlier order and held that the tax once again could not be recovered from the assessee since the tax had already been paid by the recipient of income. On revenue s appeal, the High Court held that the Tribunal s earlier order got itself merged into the order passed by it dismissing the appeal of the assessee and, therefore, the Tribunal could not have reopened the matter for any further hearing. On appeal to the Supreme Court : HELD The Circular No. 275/201/95-IT(B), dated 29-1-1997 issued by the Central Board of Direct Taxes would put an end to the controversy. The circular declares that no demand visualized under section 201(1) should be enfo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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