Assessee, advertising agency, recovers amount from its clients and makes payment to media owners for advertisement of its clients, on its media. While making payment, Assessee’s clients deduct tax at source u/s.194C and assessee again deducts tax at source u/s 194C while making payment to media owners. Show-cause notices were issued as to why it should not be treated as assessee in default u/s 201(1) and 201(1A) for failure to deduct tax on payments u/s 194J and failure to deduct tax on provisions for expenses, which was disallowed u/s 40(a)(ia ) of the Act. Assessee filed the reply, however the AO held that assessee in default u/s 201(1) and 201 (1A) of the Act. On writ the Court held that when assessee filed representation in respect of proceedings u/s. 201 and 201(1A), revenue was in undue haste passed an order determining huge sums payable by assessee for failure to appropriately deduct tax. This entire exercise was done in undue haste as Revenue was obliged to issue tax deduction certificate u/s 197.It was only on determination of assessee’s tax liability, could revenue reduce amount of tax to be deducted by assessee’s customers while making payment. Court held that the entire proceedings leading to orders were vitiated for breach of natural justice. Orders of revenue were set aside. The Court also observed that the order of revenue must speak for itself and cannot be improved upon by an affidavit-in-reply filed by assessee, its not permitted .Matter restored to revenue for fresh disposal of show cause notice after following principles of natural justice i.e. due consideration of assessee submission by speaking order. (AY. 2017-18, 2018-19, 2019-20)