Petitioner, a non-resident company and tax resident of the USA, provided a platform for planning, marketing, and executing events and had entered into third-party agreements to procure standard, off-the-shelf software products for its own use and for its Associated Enterprise, an Indian company. Petitioner sought a certificate under Section 197 in relation to payments from India, asserting that its transactions did not involve royalty or Fees for Included Services under the India-USA DTAA. Competent Authority issued a tax withholding certificate at a rate of 15% under Section 197. On writ, the Court held that  since the case of the petitioner was covered by Engineering Analysis Centre of Excellence (P.) Ltd. v. CIT [2021] 281 Taxman   19 (SC) and the Competent Authority had not correctly dealt with said judgment and had not taken other relevant factors into consideration, the certificate issued at a rate of 15% was unsustainable in law. Since almost 85% of the period was already over and payments made to the petitioner had been subjected to 15% tax, though the transactions prima facie looked to be not exigible to tax, it would be just and proper if a certificate of deduction at 2% was issued to the petitioner so that the concern of the Revenue that the petitioner could be subjected to scrutiny assessment could be addressed, and some respite could be given to the petitioner as a substantial amount was otherwise being withheld by the respondents. (AY. 2026-27)