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TMI Blog2024 (6) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... 97, it is noted that person responsible for paying the income is entrusted with the responsibility to deduct income tax at the rates specified in the certificate or deduct no tax as the case may be until such certificate is cancelled by the AO. The term person responsible for paying is defined in Section 204. Assessee being a company is the person who is responsible for TDS at the rates prescribed in the certificates issued by the respective AO(TDS) of the suppliers of the assessee which were issued in terms of provision of Section 197. It is fact on record that assessee had deducted tax at source at the rates prescribed in the certificates for each of the suppliers and had complied with the necessary requirements of their deposit and filing of returns. The genuineness of issuance of certificate u/s. 197 has not been doubted. Accordingly, there is no justification to hold that the assessee is in default, merely on the ground that the certificates have not been issued on the subsequent TAN obtained by it, though all the necessary compliances had been made by the assessee by using the other TAN, from the date from which it was obtained. It is also worthwhile to take note of the proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arter-4) at Rs.29,86,447/- 2. The Learned CIT (Appeals) erred in upholding the action of the Learned Assessing Officer rejecting the application of Your Appellant filed on 17.02.2018, u/s 154 of the Income Tax Act, 1961 when it was a consistent plea of Your Appellant that that having obtained Lower TDS Certificates in case of following parties, there was no short deduction of Tax at Source no demand should have been raised against Your Appellant. The details of amount paid to deductees TDS deducted thereon the amount of Short deduction as computed by the Assessing Officer while processing TDS Return - Form No 260 for the period 1st January, 2014 to 31st March, 2014 (Quarter -4) are as under : 3. The Learned CIT (Appeals) erred in not appreciating the following facts: a) The TDS Officers of the Deductees have issued certificate under Section 197 of the Act to the Principal Officer of Your Appellant. Such certificates are in terms of clause (iii) of Section 204 of the Income Tax Act, 1961 (hereinafter referred to as the Act ). b) Such certificate mandates the persons having a Specific PAN to whom such certificate is issued to deduct tax at a rat lower than the prescribed rate under S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of TDS Jurisdiction that too as per the direction of the TDS Jurisdictional Officer got two separate TAN for the Financial Year 2013-14 for the same unit, will not render the certificates issued under Section 197(2) as redundant. Such certificates are to be issued to the Principal Officer of the Company having specific PAN as the person responsible for deduction of tax and not to any other person or unit of the assessee based on TAN. 4. The Learned CIT (Appeals) erred in Confirming the action of the Assessing Officer in levying Interest on alleged Short Deduction of TDS of Rs. 5,08,490/- for the period 1 October, 2013 to 31st December, 2013 (Quarter -3). ITA No.4464/MUM/2023 1. The Learned CIT (Appeals) erred in confirming the order passed by Assistant Commissioner of Income Tax, Cetralized Processing Cell-TDS (herein after referred to as 'the Assessing Officer') determining short collection of TDS in case of Your Appellant for the Period 1 July, 2013 to 30th September, 2013 (Quarter - 2) at Rs.5,20,214/- 2. The Learned CIT (Appeals) erred in upholding the action of the Learned Assessing Officer rejecting the application of Your Appellant filed on 17.02.2018, u/s 154 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 319G. Subsequently, assessee shifted to another location at B-703/4, Western Edge II of western express highway, Borivali (East), Mumbai. On receipt of a letter from the AO(TDS), Kalyan, dated 08.07.2013 being jurisdictional AO(TDS) for Kalyan, assessee obtained another TAN bearing number PNER14698F, w.e.f. 14.08.2013. 6. TAN of the assessee was changed in the intermediary period. For the first two quarters of the year under consideration (from 01.04.2013 to 14.08.2013) assessee had filed its TDS returns and made TDS payments by using TAN:MUMR05319G and for the part of the second quarter and rest of the next two quarters (beginning from 14.08.2013 to 31.03.2014), compliances were done by using TAN : PNER14698F. 7. Certain suppliers of the assessee had applied for lower TDS certificates in advance for the transactions pertaining to FY 2013-14 relevant to AY 2014-15. These lower TDS certificates were issued by the AO(TDS) of respective suppliers directing the assessee to deduct TDS at lower rate. The suppliers had given the lower TDS certificates for the entire year and their respective transactions were included in TDS returns filed for all the four quarters under both the TAN. Thou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P H) which squarely covers the case of the assessee. 11. Per contra, ld Sr. DR submitted that the matter may be sent back to the AO for verification of TDS done against the two TANs of the assessee and the respective compliance made thereon after which necessary relief be given to assessee. 12. We have heard the rival contentions and perused the material on record. We have given our thoughtful consideration on the application of the relevant provisions of the Act referred by the ld. counsel in his submission. 12. 1 The provisions of Section 197 of the Act are reproduced as under: 197. (1) Subject to rules made under sub-section (2A), where, in the case of any income of any person or sum payable to any person, income-tax is required to be deducted at the time of credit or, as the case may be, at the time of payment at the rates in force under the provisions of sections 192, 193, 194, 194A, 194C, 194D, 194G, 194H, 194-I, 194J, 194K, 194LA,[194LBA], 194M, 194-O and 195, the Assessing Officer is satisfied that the total income of the recipient justifies the deduction of income-tax at any lower rates or no deduction of income-tax, as the case may be, the Assessing Officer shall, on an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment to a non- resident, not being a company, or to a foreign company, of any sum, whether or not chargeable under the provisions of this Act, the payer him- self, or, if the payer is a company, the company itself including the principal officer thereof; (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; (iv)in the case of credit, or as the case may be, payment of any sum chargeable under the provisions of this Act made by or on behalf of the Central Government or the Government of a State, the drawing and disbursing officer or any other person, by whatever name called, responsible for crediting, or as the case may be, paying such sum; (v)in the case of a person not resident in India, the person himself or any person authorised by such person or the agent of such person in India including any person treated as an agent under section 163. 12.4 From clause (iii) of the above section, we note that where the payer is a company, the person responsible for paying is the company itself including the principle o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ificates are in the name of the assessee company directing it to deduct TDS at lower rates. Merely because, assessee has separate TANs will not render the said certificates issued in terms of Section 197(2) as redundant resulting in tainting the assessee as assessee in default. 15.1 Considering the facts of the case, applicable provisions u/s.197 and 204 of the Act and Rule 28AA of the Rules as well as judicial precedent by the Hon ble High Court of Punjab and Haryana in the case of Parle Biscuits Ltd. (supra), we hold that there is no short deduction of tax at source and therefore the demand so raised both towards tax and interest is deleted. Accordingly, grounds taken by the assessee in this respect are allowed. 16. In the result, appeal of the assessee is allowed. 17. In respect of the other two appeals, i.e., 4461 4464/Mum/2023, since identical facts are involved except in change in quantum, our observations and findings arrived at in appeal No. 4458/Mum/2023 dealt herein above, applied mutatis mutandis on these two appeals also. Accordingly, two appeals of the assessee are also allowed. 18. In the result, all the three appeals of the assessee are allowed. Order is pronounced i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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