Petitioner was engaged in the business of providing domain name services, including domain name registration, web hosting, web designing, SSL certification, etc. It filed an application under section 197 for grant of certificate for nil rate of tax-Competent Authority rejected the application and issued a consequential certificate under section 197, stating only that the Department proposed to file an SLP against earlier High Court\u2019s decision affirming the petitioner\u2019s case. Court held that the Competent Authority deciding an application under section 197 had an obligation to decide the application as per the provisions of the Act, while having due regard to treaties between two countries, and should not be driven or swayed by Revenue targets\/considerations. Since no reason was assigned other than bald assertion that the Department was proposing to file an SLP against order of High Court and limitation of filing an SLP had passed, the order could not be sustained Thus, order and consequential certificate were to be quashed and authority was to be directed to issue a certificate at ‘nil’ rate. (AY. 2026-27)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 197: Deduction at source-Certificate for lower rate-Providing domain registration and web hosting services sought a nil-rate certificate-Proposal to fil an SLP-Application under section 197 must be decided as per Act and DTAA and not on revenue considerations, order was unsustainable and nil-rate certificate was directed to be issued-DTAA-India-USA [S.9(1)(vi), 9(1)(vii), Art. 12, Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-65367","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-h0j","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=65367"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65367\/revisions"}],"predecessor-version":[{"id":65368,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65367\/revisions\/65368"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=65367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=65367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=65367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}