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2018 (9) TMI 1252 - HC - Income TaxDiscretionary power u/s 197 r.w.r. 28AA of the Income Tax Rules - whether it is the Assessing Officer who has to be satisfied that the tax is to be deducted at 'Nil' or 'Zero rate' or 'Reduced rate' and that satisfaction of the Assessing Officer must be reflected from his order? - Held that:- The apprehension of the petitioner is that there was an exercise of a discretionary power in terms of subsection (1) of Section 197 and the deduction of income tax at the lower rate was justified earlier. Now, the rate has been fluctuating and for this year, the deduction is at the rate of 50% of the prescribed rate. This has not come about on an independent satisfaction of the Assessing Officer, but because of uncalled interference by his superior. For that reason, he would submit that we must direct the production of the original record. Revenue tendered the affidavit in reply on behalf of the respondents. That is affirmed by the Deputy Commissioner of Income Tax (TDS) Range2(3), Mumbai. He says that he is working in the office of the Commissioner of Income Tax (TDS) and urge that the Assessing Officer has recorded his satisfaction in terms of the legal provision. That is indeed to be found in the official record or file. If this is the position and the affidavit only reiterates or affirms what is stated or held by the Assessing Officer in his order, then, let that original record be produced for our perusal on the next date.We post this matter on 25th September 2018. The matter shall be listed on the 'Supplementary Board'.
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