Milestone Systems A/S v. Dy .CIT ( 2023) BCAJ -April – 49 ( Delhi)( HC)

S. 197 : Deduction at source – Certificate for lower rate Binding judgement of Supreme Court – Pendency of review – Assessing Officer is bound to follow the judgement – Order has to be passed due application of mind- DTAA -India – Denmark .[S. 9(1)(vi), 195 , Art, 13(3) Art. 226 ]

The petitioner made an application  under section 197 of the act for withholding tax certificate . The  application was rejected on the ground that review petition  is pending  in respect of the order relied by the petitioner in Engineering Analysis Centre of Excellence Pvt Ltd v . CIT  2021 SCC Online SC 159 .  On writ the Court held that  as long as the judgement of the Supreme Court is in force , the concerned authority could not have side stepped the judgement , based on the fact that the review petition had been preferred. The Assessing Officer was directed to look in to the distribution agreement and decide according to law . Order was quashed .  Directed the Assessing Officer to pass the order after considering the distribution agreement .  (W.P.( C) 3639/ 2022 dt. 14 -3 2022 )( AY. 2022-23)