Petitioner Netherland based company held 58.39 percent of shares of Indian company [DFCPL] which proposed to distribute dividend. The petitioner filed an application under section 197 of the Act  before the Assessing Officer requesting him to issue a certificate to lower withholding tax  rate of 5 percent as applicable under the DTAA. The application was rejected and certificate was issued under section 197 of the Act at the rate of 10 percent. on writ allowing the petition  the court held that dividend received by a Netherland company from Indian Company is Liable to deduct lower withholding tax rate of 5 per cent instead of 10 per cent as per    DTAA-India and Netherland. (FY. 2021-22)