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2023 (3) TMI 869 - HC - Income TaxTDS u/s 195 - seeking certificate u/s 197 setting out the withholding tax at “NIL” rate - scope of the proceedings under Section 197 - contention is that payment received by the petitioner against software-based information security solutions to its partners under the Reseller Agreements cannot be treated as Royalty, both as per Indo-US DTAA and the judgement rendered in Engineering Analysis Centre of Excellence (P.) Ltd [2021 (3) TMI 138 - SUPREME COURT] - HELD THAT:- The concerned officer would have to re-examine the application filed on behalf the petitioner under Section 197 of the Act, both, in the backdrop of Article 12 of the Indo-US DTAA and the judgment of the Supreme Court rendered in Engineering Analysis Centre of Excellence (P.) Ltd. That said, the other decisions which have been cited by the petitioner, will also have to be adverted to by the concerned officer. Accordingly, the impugned certificate dated 03.08.2022 and communication/order dated 17.08.2022 are set aside. The concerned officer will carry out a fresh exercise and pass an order once again, having regard to what has been stated by us hereinabove. This exercise will be carried out by the officer within the next two weeks. The concerned officer will grant hearing to the petitioner and/or its authorized representative. The date and time of hearing will be communicated to the petitioner via email. The concerned officer will be at liberty to accord hearing via video conferencing (VC). Writ petition is disposed of in the aforesaid terms. Pending application shall stand closed.
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