The petitioner is a loss making company. The petitioner has filed an application before the Assessing Officer to issue a certificate for nil rate as the TDS was to be deducted at 10 % in respect of interest receivable from the group companies. The application was rejected. On writ allowing the petition the Court held that the order of the Assessing Officer is cryptic and it does not give any reasons for rejection. The Court held that the Assessing Officer cannot ignore the mandate of Rule 28AA which is binding on him. The Court set aside the rejection order and directed the Assessing Officer to decide the application within four weeks. Referred Bently Nevada LIC v.IT (IT) (2019) 311 CTR 677/ 183 DTR 257 (Delhi) (HC), Man Power Group Services India (P) Ltd. v. CIT (2021) 430 ITR 399/ 319 CTR 267/ 198 DTR 355 (Delhi) (HC)
Hero Solar Wind Energy (P) Ltd. v. CIT (2021) 205 DTR 230 / 322 CTR 254 / 283 Taxman 53 (Delhi)(HC) Hero Wind Energy (P) Ltd. v. CIT (2021) 205 DTR 230 / 322 CTR 254 / 283 Taxman 53 (Delhi)(HC)
S. 197 : Deduction at source-Certificate for lower rate-Interest income-Cryptic order-Assessing Officer cannot ignore the mandate of Rule 28AA-Order was set aside. [S.194A, Art. 226 ]