The petitioner, a Netherlands-based Company, held 58.39% of the shares of the Indian Company (DFCPL).  During the relevant yea 2021-22, DFCPL proposed to distribute a dividend to petitioner, for that the application u/s 197 before the AO requesting him to issue a certificate for lower withholding tax rate of 5% as applicable under DTAA between India and Netherlands read with Protocol in view of “Most Favoured Nation”, MFM clause in DTAA.  The AO rejected the application and issued the certificate u/s 197 at the rate of 10%.   High Court while relying upon the decision of the same High Court in Concentrix Services Netherlands B.V. v. ITO (2021) 127 taxmann.com 43 / 434 ITR 516 (Delhi) and Nestle SA Vs. AO (International Taxation) (W.P. (C) No. 3243 OF 2021, dtd. 04-06-2021, held that in view of MFM clause in DTAA, the rate of tax on dividend applicable at the rate of 5%.   The Revenue challenged the order of the High Court before the Supreme Court. The Supreme Court found that the judgments relied upon by the High Court were set aside by the Supreme Court in AO (IT) v. Nestle SA (2023) 155 taxmann.com 384 / (2024) 296 Taxman 580 / (2023) 458 ITR 756 (SC), and thus, the impugned order of the High Court was to be set aside.  (AY. 2022-23)