Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

April 2026

A. TDS — Certificate for deduction at lower rate u/s 197 — Validity — Certificate is valid for the assessment year specified in the certificate unless cancelled earlier — Effective throughout the assessment year and not prospectively from the date of certificate. B. Assessee in default u/s. 201(1) — Since certificate operates for the entire assessment year the assessee cannot be deemed as assessee in default — Consequent interest u/s. 201(1A) is unjustified.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 5 mins

5. CIT(TDS) vs. National Highways Authority of India: 2026

TMI 338 - MP:

A. Y. 2009-10: Date of order 06/03/2026:

Ss. 197 and 201 of ITA 1961:

A. TDS — Certificate for deduction at lower rate u/s 197 — Validity — Certificate is valid for the assessment year specified in the certificate unless cancelled earlier — Effective throughout the assessment year and not prospectively from the date of certificate.

B. Assessee in default u/s. 201(1) — Since certificate operates for the entire assessment year the assessee cannot be deemed as assessee in default — Consequent interest u/s. 201(1A) is unjustified.

One SECCL entered into a contract with the assessee for the development of national highways. The assessee made a payment to SECCL after deducting tax at source u/s. 195 of the Income-tax Act, 1961 at marginal rates mentioned in the order of the Assessing Officer passed u/s. 197 for different assessment years.

The assessee was treated as the person responsible for making payments to the foreign contractor, deducting tax at source and filing a return u/s. 206 of the Act. On verificatio

Read More
Download PDF

You May Also Like

A. Reassessment — Income escaping assessment — Audit Objections — Relevant details submitted and on record before the AO during original assessment — It amounts to review of assessment — Re-considering of same material to arrive at different conclusion cannot be permitted — Re-opening of assessment bad-in-law. B. Reassessment — Time limit for issuance of notice for A. Y. 2016-17 — Time limit of four years from the end of the relevant Assessment Year applicable prior to 01/04/2021 — Notice u/s. 148 issued on 31/03/2023 — Beyond a period of four years — First proviso to section 149 — No notice could have been issued under the pre-amended provisions — Notice and subsequent proceedings barred by limitation.

Stay Application – Pendency of Appeal before CIT(A) – Addition made based on statement recorded of third party which was retracted – Assessee salaried employee – unconditional stay granted and attachment on bank account lifted.