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2021 (12) TMI 1085 - DELHI HIGH COURTLower deduction certificate u/s 197 - Applications u/s 197 for “Nil‟ rate of withholding tax as per under Articles 8 and 12 of the India Ireland Double Taxation Avoidance Agreement (“Tax Treaty‟), they were liable to pay tax only in Ireland - HELD THAT:- We find force in the submission of Mr. Jolly that the aspects – which the Assessing Officer is obliged to take into consideration, while considering an application under Section 197 of the Act, have not at all been adverted to. The reasons proceed only on the basis of the liability, if any, which may, or may not, be fastened upon another group company, i.e. CAT-9. That, by itself, cannot be a justification for denying the “Nil‟ rate certificates to the petitioner. The reasons now brought out by Mr. Agarwal do not form part of the reasons contained in the impugned order and the respondents are precluded from citing those as reasons to justify the impugned order issued to the petitioner. We, accordingly, quash and set aside the impugned order dated 07.09.2021 and remand the matter back to the Assessing Officer, who may pass a fresh order within four weeks from today. The petitioner is directed to provide whatever relevant information is called for by the Assessing Officer without any delay, so that the order is passed within the time frame fixed by us. In the interim, the petitioner will be entitled to avail of the “Nil” rate of withholding Tax, as has been the position in the past several years consistently.
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