Tribunal held that the assessee had deducted tax on the sum the rate of one per cent. instead of two per cent. Therefore there was no failure of deduction of tax. If there was any offence or violation it was deduction of tax at lower rates compared to what was prescribed. Relied on CIT v. S. K. Tekriwal [2014 361 ITR 432 (Cal.)(HC) ( AY. 2011-12)
Dy CIT v. EXL Service.Com (India) Ltd. (2020) 83 ITR 11 (SN) (Delhi)(Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Deducting tax at one Per Cent. instead of two per cent-No disallowance can be made.