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2023 (11) TMI 398 - DELHI HIGH COURTSeeking a lower deduction of tax certificate (“LDC”) - Seeking a lower deduction of tax certificate (“LDC”) - LDC was grated for TDS @ 0.5% instead of @ 0.01% as sought - Rate of deduction of Tax Deducted at Source (“TDS”) is 1% (one per cent) u/s 194O - HELD THAT:- DCIT(TDS)/Respondent No. 1 set forth no reasons whatsoever as to why the Petitioners’ request that TDS should be deducted at a rate of 0.01% (zero point zero one per cent) ought not to be accepted. Further, at the request made, Learned Standing Counsel, an opportunity was granted to the Respondents to file a counter-affidavit in the matter which would furnish reasons as regards the conclusion arrived at in the Impugned Order. However, this Court specifically observed therein that the Impugned Order must stand on its own legs, and accordingly, the reasons furnished by way of a counter-affidavit could not be supplanted into the Impugned Order. This Court is of the considered opinion that the principle enunciated in Mohinder Singh Gill [1977 (12) TMI 138 - SUPREME COURT] is applicable to the case herein. wherein the Supreme Court rejected the notation of supplementing reasons in relation to an executive order by way of an affidavit. Therefore this Court must consider whether the Impugned Order read with the Impugned Letter, is a speaking and well-reasoned order so as to satisfy the mandate of Rule 28AA of the IT Rules, devoid of the reasons furnished by the Respondents before this Court vide its counter affidavit. As perused the Impugned Order read with the Impugned Letter and we find that the reasons furnished by the Respondent No. 1 qua the Application i.e., as to why the Petitioners’ request that TDS should not be deducted at a rate of 0.01% (zero point zero one per cent), hinges on broad generalizations in relation to the propriety of projected estimations of revenue and tax liability, and accordingly has been has been issued mechanically reflecting non-application of mind. Accordingly, following Camions Logistics Solutions (P) Ltd. [2020 (12) TMI 1084 - DELHI HIGH COURT] this Court find that the Impugned Order read with the Impugned Letter suffers from non-application of mind which would certainly result in grave prejudice to the Petitioner. WP allowed.
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