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Delhi High Court - Orders

Milestone Systems A/S vs Deputy Commissioner Of Income Tax ... on 14 March, 2023

Author: Rajiv Shakdher

Bench: Rajiv Shakdher

                          $~43
                          *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +    W.P.(C) 14548/2022
                               MILESTONE SYSTEMS A/S                   ..... Petitioner
                                               Through: Dr. Shashwat Bajpai, Mr Akshay
                                                        Anurag & Ms Sanjana Sachdev,
                                                        Advs.
                                               versus

                                DEPUTY COMMISSIONER OF INCOME TAX
                                CIRCLE INT TAX 2(2)(1) DELHI        ..... Respondent
                                              Through: Mr Sanjay Kumar, Sr. Standing
                                                          Counsel.
                                CORAM:
                                HON'BLE MR JUSTICE RAJIV SHAKDHER
                                HON'BLE MS JUSTICE TARA VITASTA GANJU
                                              ORDER

% 14.03.2023 [Physical Hearing/Hybrid Hearing (as per request)]

1. This writ petition concerns Financial Year (FY) 2022-23.

2. The record discloses, that petitioner had filed an application under Section 197 of the Income Tax Act, 1961 [in short, "the Act"] for being issued a lower withholding tax certificate. This application was filed on 14.07.2022.

2.1 The petitioner sought issuance of the said certificate at "NIL" rate.

3. The concerned officer, however, issued a lower withholding tax certificate dated 31.08.2022, pegging the rate of withholding tax at 9.99%.

4. The concerned officer furnished the reasons for issuance of the impugned certificate via an undated order, which is marked as Annexure H, and is appended on page 285 of the case file.

W.P.(C) 14548/2022 page 1 of 2 Signature Not Verified Digitally Signed By:SHEHROZ ALAM Signing Date:17.03.2023 15:31:49

5. The issue which the petitioner has raised in the instant writ petition was also raised by the petitioner in another writ petition concerning FY 2021-22. This writ petition was listed on our board today. The said writ petition is numbered as W.P.(C) 3639/2022.

6. We have allowed the said writ petition via a detailed order, and remitted the matter to the concerned officer for a fresh decision on the petitioner's application preferred under Section 197 of the Act. 6.1 Accordingly, the impugned certificate in this case, which is dated 31.08.2022, and the order, which is marked as Annexure-H are set aside. 6.2 The concerned officer is directed to reexamine the petitioner's application, in light of the reasons and directions given by us while disposing of W.P(C) 3639/2022.

7. Since the FY in issue is coming to an end on 31.03.2023, the concerned officer will carry out the reexamination exercise within ten days from the date of receipt of a copy of the judgement.

8. The writ petition is disposed of in the aforesaid terms.

9. Parties will act based on the digitally signed copy of the order.





                                                                                 RAJIV SHAKDHER, J


                                                                         TARA VITASTA GANJU, J
                                MARCH 14, 2023/r
                                                          Click here to check corrigendum, if any

                          W.P.(C) 14548/2022                                                 page 2 of 2




Signature Not Verified
Digitally Signed
By:SHEHROZ ALAM
Signing Date:17.03.2023
15:31:49