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TMI Blog2013 (2) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 197(2) as redundant. Such certificate is to be issued to the Principal Officer of the Company as the person responsible for deduction of tax and not to any other person or unit of the assessee. Therefore, the order passed by the CIT (A) Rohtak and affirmed by the Tribunal cannot be said to be suffering from any illegality in any manner. No merit in the present appeal - in favour of assessee. - ITA No. 207 of 2012 (O&M) - - - Dated:- 28-1-2013 - MR. HEMANT GUPTA AND MS. RITU BAHRI, JJ. Mr. Yogesh Putney, Advocate for the appellant. Mr. Girish K. Dave, Advocate, Mr. Satyen Sethi, Advocate and Mr. Ashim Aggarwal, Advocate for the respondent. HEMANT GUPTA, J. (ORAL) The present appeal under Section 260A of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 194C of the Act. Eight of the contractors, executing works for the assessee, furnished certificates as contemplated under Section 197 (2) of the Act addressed to Parle Biscuits Pvt. Ltd., Mumbai for deduction of tax on lower rate than the specified in Section 194C of the Act. The assessee made a deduction of tax at the rates so specified in such communications acting on certificates issued by the Assessing Officer of the contractors. The learned Assessing Officer found that there is short deduction of tax as the Parle Biscuits Pvt. Ltd., Mumbai has a separate Tax Deduction Account Number (TAN) than the Parle Biscuits Pvt. Ltd., Bahadurgarh, which implies that the assessee and Parle Biscuits Pvt. Ltd., Mumbai are separate ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Any person responsible for paying any sum to any resident (hereafter in this section referred to as the contractor) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to - (i) one per cent where the payment is being made or credit is being given to an individual or a Hindu undivided family; (ii) two per cent where the payment is being made or credit is being given to a person other than an individual or a Hindu undivided f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 194C of the Act. The relevant clause reads as under:- 204. xxx xxx xxx (iii) [in the case of credit, or, as the case may be, payment] of any other sum chargeable under the provisions of this Act, the payer himself, or, if the payer is a company, the company itself including the principal officer thereof; The procedure for obtaining certificate for deduction at lower rates or lower deduction of tax is prescribed in Rule 28AA of the Income Tax Rules, 1962. Sub clause 4 of the said Rule contemplates that the said certificate issued in terms of Section 197(1) of the Act is valid only with regard to person responsible for deducting the tax and specified therein. Sub clause (5) of Rule 28AA contemplates that the certificate shall be d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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