9911796707
TMI Blog2020 (8) TMI 849X X X X Extracts X X X X X X X X Extracts X X X X ..... NER LTD. [ 2020 (6) TMI 669 - ITAT BANGALORE] has followed the decision rendered in the case of Nagarjuna Fertilisers Chemicals Ltd. [ 2017 (3) TMI 81 - ITAT HYDERABAD] and in the case of Danisco India Private Ltd.[ 2018 (2) TMI 1289 - DELHI HIGH COURT] in holding that the provisions of sec.206AA of the Act would not apply to a recipient of income, who is by the DTAA entered by India and his country. We notice that the Ld CIT(A) has decided this issue on identical lines. Accordingly, we uphold the view taken by Ld. CIT(A) on this issue. - Decided against revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 to 2013-14 are less than the monetary limits prescribed by the CBDT. Since identical issue is being urged in all these appeals, we prefer to dispose of the appeals on merits. 4. We have noticed that the issue of applicability of provisions of sec.206AA to a recipient of income to whom the provisions of DTAA are also applicable was decided by the Bangalore bench of ITAT in the case of M/s. Bharath Fritz Werner Ltd (supra). For the sake of convenience, we extract below the decision rendered by the coordinate bench in the above said case: "3. The assessee is a company engaged in the business of manufacturing metal cutting grinding machines, spares, accessories and related services. The DCIT, Intl. Taxation, Circle 1(1), Bangalore [DCIT] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified in Section 206AA. The recipient is also required to furnish his PAN to the payer and both of them are required to indicate the same in all correspondence, bills, vouchers and other documents which are sent to each other. A recipient who fails to furnish PAN to the person making a payment would suffer TDS at the higher of the rates mentioned below: • At the rate specified in the relevant provision of the Act; • At the rate or rates in force, i.e., the rate prescribed in the Finance Act.; • At the rate of 20% 4. In an appeal against the aforesaid order, the assessee contended before the CIT(Appeals) that the rate of tax at which TDS should be made by the assessee is 10% in accordance with the Treaty for Avoid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. the provisions of Sec.206AA of the Act, the rate of tax deduction at source is 20%. 6. The plea of the revenue was that section 206AA starts with a non-obstante clause and therefore it overrides all other provisions of the Act including 90(2), 115A and 139A. The plea of the Assessee was that DTAA was supreme and in this regard reliance was placed on the Hon'ble Supreme Court decision in the case of Azadi Bachao AndoIan (2003) 263 ITR 706 (SC), whereby it was held that DTAA, even if inconsistent, will prevail over the Act. Reliance was also placed on the decisions of the Hon'ble Andhra Pradesh High Court in the case of Sanofi Pasteur (2013) 354 ITR 316 (AP) wherein it was observed that DTAA being a sovereign matter, the machi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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