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2019 (10) TMI 862 - HC - Income TaxIssuance of certificate u/s 197 (1) - rate of deduction of tax at source has been raised from 1% to 4% - Petitioner claims that the sudden rise of the rate at which the TDS is to be deducted is arbitrary and no reasons for the same have been communicated to the Petitioner, much less any hearing has been granted to the Petitioner - HELD THAT:- While deciding Jiangdong Fittings Equipment Co. Ltd v. Deputy Commissioner of Income Tax & Ors. [2019 (9) TMI 1040 - DELHI HIGH COURT] we have held, after taking note of the earlier decisions in Bently Nevada LLC v. Income Tax Officer, Ward-1(1)(2), International Taxation & Another [2019 (7) TMI 1503 - DELHI HIGH COURT] of this Court and the decision of the Bombay High Court in Tata Teleservices (Maharashtra) Ltd v. Deputy Commissioner of Income Tax (TDS) [2018 (2) TMI 192 - BOMBAY HIGH COURT] that Section 197 (1) does not require the Assessing Officer to grant personal hearing to the assessee prior to the issuance of the certificate. All that is required is that the Assessing Officer should have good reasons to issue the certificate under Section 197 (1) of the Act and the said reasons should be communicated to the assessee. As Senior Standing Counsel, on instructions, states that the standard operating procedure has now been formulated to provide that whenever there is an upward revision of the rate of deduction at source while issuing the certificate under Section 197(1) of the Act, the asseseee would be communicated the reasons for the same. We dispose of this petition with a direction to the Respondents to provide to the Petitioner, within one week, the reasons recorded for issuance of the impugned certificate fixing the rate of deduction of TDS at 4%.
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