Dismissing the petition the Court held that Under s. 197(1), it is an AO who can entertain and decide an application of an assessee for either total exemption or permission for reduced deduction of TDS. The statute has used the language that if the AO is satisfied that the total income of the recipient justifies the deduction of income-tax at any low rates or no deduction of income-tax, as the case may be, the AO shall on application made by the assessee in this behalf give to him such certificate as may be appropriate. It is undoubtedly true that the deduction of TDS and depositing it with the Government revenue by the payee does not decide the final tax liability of the recipient of the income which would be the subject matter of assessment of the return. If tax higher than what is actually due to be paid by the assessee to the Department is recovered in form of TDS, the assessee can always claim refund of such excess tax. However, sub-section (1) of s. 197 has been enacted to give relief to the assessee, whose income may not justify deduction of tax at full rate or no deduction altogether. Necessarily, therefore, the satisfaction of the AO at that stage about the total income of the recipient justifying reduced collection of tax at source would be prima facie in nature. Two things emerge from the said provisions; firstly, that such consideration cannot be devoid of exercise of sound discretionary powers and based on mere ipse dixit of the AO. Secondly, that the power vests with AO. No provision or rule is brought to our notice which would enable the higher authority to govern such discretion of the AO statutorily vested in him under sub-section (1) of s. 197.