- (1.) The present appeal under Section 260A of the Income Tax Act, 1961 (for short 'the Act') is against an order dated 07.03.2012 passed by the Income Tax Appellate Tribunal, Delhi Bench 'F' New Delhi (for short 'the Tribunal) in ITA No. 100/Del/2012, whereby the Revenue's appeal was dismissed holding that the tax deduction certificates were validly issued under Section 197, therefore, the order passed by the Commissioner of Income Tax (Appeals), Rohtak does not warrant any interference.
(2.) The Revenue has framed the following substantial questions of law in the present appeal: "(i) Whether on the facts as well as in law, the Hon'ble Income Tax Appellate Tribunal, Delhi Bench, New Delhi has erred in law in deleting the demand of Rs.55,80,301/- created on a/c of short deduction of tax from the payment of Rs.46,83,10,501/- made to eight different parties of contract work done by him. (ii) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was on the facts and in the circumstances of the case the ld. CIT(A), Rohtak has erred in law holding that "the concerned A.O may not be aware of the existence of various TANs of the deductors and the concerned A.O of the deductee generally issue certificate u/s 197 on the registered office of the deductor, whereas the certificates u/s 197 is issued by the A.O in the name of the deductor only as requested by the deductee applicant."
(3.) The assessee has given contract of executing the works to various persons, making it liable to deduct tax on the rate prescribed 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.;