| COURT: | Delhi High Court |
| CORAM: | S. Muralidhar J, Talwant Singh J |
| SECTION(S): | 197, Rule 28AA |
| GENRE: | Domestic Tax |
| CATCH WORDS: | application of mind, TDS deduction |
| COUNSEL: | Sachit Jolly |
| DATE: | July 29, 2019 (Date of pronouncement) |
| DATE: | August 3, 2019 (Date of publication) |
| AY: | - |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 197/ Rule 28AA TDS: An order u/s 197 is quasi-judicial & must be supported by valid & cogent reasoning. It has to be based on objective criteria and relevant material. On facts, there is arbitrariness and non-application of mind at various levels which vitiates the certificate. The reasons do not conform to the requirement of s. 197 r. w. Rule 28 AA. The settled legal position is that orders passed by a statutory authority under "dictation" of a superior officer or anyone else is bad in law | |
The Court accordingly finds that in the present case the impugned withholding certificate which directs TDS to be deducted at 5% on the payments made by the Indian entities to the Petitioner is unsustainable in law, inasmuch as it is not based on valid reasons and is contrary to the legal requirement spelt out in Section 197(1) of the Act read with Rule 28AA of the Rules. The impugned certificate is hereby quashed
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