Petitioner-LLP challenged an order dated 16-01-2026 and a withholding tax certificate dated 28-01-2026 issued under Section 195 for FY 2025-26 (AY 2026-27). For the same assessment year, High Court, on 14-01-2026, in the petitioner’s own case, recorded a finding of no taxability, rejected the claim of the Assessing Officer regarding the recipient having a virtual service permanent establishment in India and remanded the matter for a fresh order. Notwithstanding the above, the competent authority issued a certificate under Section 195 at a 5.25% rate on 28-01-2026 instead of issuing a ‘Nil’ rate certificate. On writ, the Court held that instead of setting aside and remanding matter to the competent authority to issue a certificate at ‘Nil’ rate, the certificate dated 28-01-2026 which the respondent had issued to the petitioner would be treated as a certificate of ‘Nil’ rate instead of a certificate of 5.25%. Court also held that the competent officer or any other authority who was supposed to consider the petitioner’s application under Section 195 would issue a certificate of ‘Nil’ rate of tax not only for Financial Year 2025-26 (AY 2026-27), but also for subsequent years in case an application was filed. Further, the competent authority dealing with the petitioner’s subsequent application(s) under Section 195 would not be bound by the direction given above if he came to a conclusion and recorded a finding that the petitioner had a PE in India and transactions which company had carried out in India were liable to be taxed in India. (AY. 2026-27)