The assessee made applications under section 197 of the Income-tax Act, 1961 for “nil” rate of withholding tax in respect of the lease rentals on the ground that under articles 8 and 12 of the Double Taxation Avoidance Agreement between India and Ireland they were liable to pay tax only in Ireland.  The AO directed to withhold tax at 10 Percent based on the survey of group concern. On writ the Court held that the order was unsustainable and accordingly, quashed and set aside. The matter was remanded back to the Assessing Officer. In the interim period, the assessee was entitled to avail of the “nil” rate of withholding tax, as had been the position in the past several years consistently. Since the aircraft in question was leased to AIL for a period of 12 years, the interests of the Revenue was sufficiently protected in any eventuality of the assessee being found liable to payment of taxes, interest or penalty.