Manpower Group services India Private Limited Vs CIT (TDS)-1, Delhi
Forum- Delhi High court
Date-21st December,2020
Sub: Whether Writ lies against an order passed u/s 197 claiming lower deduction of tax at source or revision petition has to be filed u/s 264? Also whether challenge in a writ in such a situation can only be made to the decision making process or the decision itself ?

The delhi high court in the above case was dealing with grievance of the appellant that inspite of huge refunds which were pending for earlier years, the certificate for non deduction of tax at source was granted at a higher rate rather than the rate which was warranted. The department argued that alternative remedy was available in the form of revision u/s 264 warranting dismissal of writ. The Court however noted that now the order u/s 197 is passed after approval from the Commissioner and as such asking the appellant to go to the commissioner would amount to relegating it to appeal from CEASAR to CEASAR and thus the writ was maintainable. The Court however, noted that in a writ the court could only see whether the relevant Rule 28AA had been followed or not which prescribes the manner in which such applications are to be disposed off and having found the present case to have not been decided in the manner as prescribed, remanded the matter back to the Officer for passing a speaking order in accordance with Rule 28AA.

This order would be help ful in all those cases where certificate for lower deduction of tax has been arbitrarily refused or is granted not at the correct rates as warranted.

Ramesh Patodia
23-12-2020