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2013 (10) TMI 655 - DELHI HIGH COURTEffective date of Order issued u/s 197 for lower deduction tax at source or no TDS – whether has retrospective effect or prospective effect - Penalty - Held that:- Section 197 does not prescribe or state that an order will be effective from the date the order is issued - The statute does not bar the Assessing Officer from issuing the certificate for the financial year - the assessing officers take time to dispose of applications moved under Sections 195 and 197 - the order of the tribunal does not require any interference as the certificate/order dated 9th October, 2007 has not been modified or corrected - the deductee was not liable to pay tax and income tax authorities have not suffered any loss or disadvantage – there was no justification for imposition of penalty - Penalty cannot be imposed once it is held that the respondent-assessee had acted in terms of the certificate – Decided against Revenue. If the certificate was contrary to the circular, it was for the appellant to take steps to rectify the said certificate either under Section 154 or by way of suo motu power of revision under Section 263. An order, which is wrong, cannot be treated as void ab initio till it is corrected or rectified.
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