9911796707
TMI Blog2016 (9) TMI 1264X X X X Extracts X X X X X X X X Extracts X X X X ..... [1] By way of this appeal, the assessee appellant has challenged correctness of the order dated 28.05.2015 passed by the learned CIT(A) in the matter of rectification of mistake under section 154 r.w.s 200A of the Income Tax Act, 1961, for the assessment year 2014-15, on the following grounds: "1. On the facts and in the circumstances of the case and in law, the CIT(A) erred in upholding the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.2 In not appreciating the fact that section 206AA of the Act is not a charging section and provisions of Chapter XVII-B governing TDS are not subordinate to section 90(2) of the Act." [2] To adjudicate on this appeal, only a few material facts need to be taken note of. The assessee has made a remittance to a German tax resident, and, in accordance with the provisions of the Indo German Double T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A), relying upon the press release dated 20th January 2010 issued by the Central Board of Direct Taxes, held that, in terms of the provisions of Section 206AA, in a case in which the recipient foreign entity has not obtained PAN from the Indian tax authorities, the tax will be deducted at a higher rate of 20%. The assessee is not satisfied and is in further appeal before us. [3] We have heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich provides a higher tax burden- i.e. taxability @ 20% in the event of foreign entity not obtaining the permanent account number in India, therefore, cannot be pressed into service, as has been done in the course of processing of return under section 200A. To that extent, short deduction of tax at source demand, raised in the course of processing of TDS return under section 200A, is unsustainabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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