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2022 (7) TMI 1094 - HC - Income TaxApplication u/s 197 - Certificate for deduction at lower rate - seeking a withholding certificate at a lower tax rate of 1.74% - HELD THAT:- This Court finds that the Petitioner’s application seeking withholding certificate at a low tax rate has been rejected by Respondent No.1 on the ground that there exists huge outstanding demand on their internal portal. However, in the very first paragraph of the impugned order, the Officer takes note of the observation of the PAN Assessing Officer that a number of rectification applications of the assessee are pending and once they are decided, the demand against the assessee is likely to be reduced to NIL. Consequently, this Court finds that the very foundation for rejection of the application filed by the Petitioner under Section 197 is self-contradictory. Accordingly, this Court set asides the impugned order dated 16th May, 2022 and directs the Respondent No.2 to decide the rectification applications filed by the Petitioner, in accordance with law within six weeks. Needless to state that if any refund is due and payable to the Petitioner, the same shall be refunded not later than eight weeks from today, in accordance with law. This Court clarifies that it has not expressed any opinion on the merit of rectification application. Further, the Respondent No.1 is directed to once again decide the Petitioner’s application u/s 197 of the Act qua Sections 194A and 194J of the Act, within two weeks of disposal of the rectification applications.
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