TLG India (P) Ltd. v. Dy.CIT (2019) 184 DTR 349/(2020) 421 ITR 418/ 312 CTR 199/ 269 Taxman 295 (Bom.)(HC)

S. 197 : Deduction at source-Certificate for lower rate–Application for lower tax deduction is allowed, subject to certain conditions. [S. 194-C, 194-H, 197, 201(1), 201(1A), 264, Art.226]

High Court allowed the  Petitioner’s application dated 14th August, 2019 is restored to the Assessing Officer for fresh consideration and passing of the order on the same, after following the principle of natural justice, within a period of two weeks from the date this order is uploaded on the High Court web site. In the meantime, the Petitioner’s client/customers would continue to deduct tax in terms of the Certificate issued on 4th June, 2019 (which was set aside on 29th July, 2019 by this Court in Writ Petition No.1719 of 2019) will be the rate which will apply. However, it is made clear that if, the Income Tax Officer comes to the conclusion that the Petitioner is liable to pay tax under S. 201 & 201(1A) of the Act in respect of the show cause notice dated 24th May, 2019 for the AY. 2017-18, 2018-19 and 2019-20, consequent to the order passed today in Writ Petition No.2575 of 2019. In the above eventuality, the Respondent No.2 herein would be entitled to cancel/substitute the Certificates issued under Section 197 of the Act within two weeks of this order being uploaded on the website of this Court.(WP No 2574 of  2019Nov 18, 2019) (AY 2017-18, 2018-19, 2019-20)