Whether provisions of Section 206AA overrides provisions of Section 90(2) of Income-tax Act, 1961

CA Mayank Parekh Facts of the Case: The assessee had made payments to non-residents on account of interest, royalties and fees for technical services and the same were subject to withholding under Section 195 of the Act. The assessee in accordance with provisions of Section 90(2) deducted tax on such payments as per the beneficial rates prescribed in the DTAA with respective countries. As the recipient being non-residents did not have Permanent Account Number (‘PAN’), the Assessing Officer treated such payments as ‘short deduction’ of tax in terms of the provisions of Section 206AA of ...