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2018 (2) TMI 192 - HC - Income TaxRejection of an application made u/s 197 - empowerment to the AO to cancel the certificate issued under Section 197(1) with regard to lower and/or nil withholding tax - Held that:- This Court had occasion in Mckinsey and Company Inc. Vs. U.O.I. [2010 (4) TMI 235 - BOMBAY HIGH COURT] to consider the exercise of powers under Section 197(2) of the Act by the Assessing Officer i.e. to cancel the certificate granted earlier. This Court had observed that AO can exercise power under Section 197(2) for canceling the certificate which has been earlier issued/ granted. However, such a cancellation/ departure from the earlier view has to be made on valid and cogent reasons, i.e. when there is material on record to justify the departure. The impugned order does not indicate any such material, nor Revenue is able to show us any such change in circumstances which would warrant canceling certificate dated 4 May 2017. The basis/ ground (a) of the impugned order is not sustainable in the facts and renders the order bad. Outstanding tax demand payable to the revenue by the petitioner - Held that:- Where the petitioner states that the issue is concluded by a decision dated 27 May 2016 of the Tribunal in its own case, then the assessing officer has to consider the same and give some modicum of reason why it is prima facie not covered by the decision of the Tribunal. This is particularly so in the back ground of the petitioner’s Appeal with respect to the demand of ₹ 6.68 Crores being heard by the CIT(A) as far back as in February 2017 and no order being passed thereon till date. Further, in the present case the impugned order does not deal with the petitioner’s contention that the demand of ₹ 28.00 Lakhs is on account of mistake in application of TRACE system nor does it deal with the Petitioner's contention that the entire demand of ₹ 6.90Crores can be adjusted against the refundable deposit of ₹ 7.30 Crores, consequent to the order dated 27 May 2016 of the Tribunal in its favour. Therefore, the impugned order dated 23 October 2017 seeking to cancel the certificate dated 5 May 2017 is a non-speaking order as it does not consider the petitioner’s submissions.
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