Held, allowing the petitions, that it was not in dispute that prior to assessment year 2022-23, the Department had been issuing certificates under section 197 at 1.5 per cent. and that in earlier proceedings the High Court had set aside orders stipulating deduction at higher rates whenever a certificate of higher rate was issued and directed the Department to issue certificates at the rate of 1.5 per cent. For the assessment year 2022-23, the Assessing Officer held that the assessee was having a permanent establishment in India and therefore, when the order dated May 16, 2025 pertaining to the certificate was passed, there existed some rationale or justification. However, by order dated October 17, 2025, such finding had been set aside by the Tribunal and, therefore, the very ground available with the Department to justify or substantiate the higher deduction of tax given in the order dated May 16, 2025 had lost its foundation. The order dated May 16, 2025 for deduction of tax at 3.5 per cent. was therefore, quashed and set aside. The Departmental authorities were directed to issue a fresh certificate to the assessee providing deduction of tax at the rate of 1.5 per cent, within a period of 15 days. The court was conscious of this fact that the order of the Tribunal could be challenged by way of an appeal under section 260A before the court. No appeal had been filed may be because the limitation for filing such appeal was still continuing. The Department was directed to continue issuing certificate(s) under section 197 to the assessee for future years as well, as and when application in this regard was filed. The Department shall be free to issue a certificate of higher rate than 1.5 per cent. if the order dated October 17, 2025 passed by the Tribunal for the assessment year 2022-23 is set aside or otherwise modified and if the Department was in receipt of any information or evidence showing existence of assessee’s permanent establishment in India. However, in case the Department was of the view that the assessee was having a permanent establishment in India, it shall issue a notice to the assessee eliciting its response, and when the assessee was unable to satisfy the Department that permanent establishment was not in existence, then only it shall issue a certificate of higher tax rate under section 197 (AY. 2025-26)