DTAA Overrides Section 206AA Of Income Tax Act For TDS On Payments To Non-Residents Without PAN: Gujarat High Court

In a significant decision, the Gujarat High Court has dismissed an appeal filed by the Income Tax Department against M/s Adani Wilmar Ltd., concerning the rate of Tax Deducted at Source (TDS) on payments made to non-residents. The department had raised a demand, asserting that TDS should have been deducted at 20% under Section 206AA of the Income Tax Act, 1961 due to non-furnishing of Permanent Account Number (PAN) by…