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TMI Blog2018 (2) TMI 1286X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 197 of the Act directed the parties mentioned therein to deduct tax at 1.37 percent in case of interest payment under Section 194A of the Act and Nil/ No amount towards TDS in respect of payment being made under Section 194C and 194J of the Act. 3 This Petition first came up on board on 27 November 2017 and has been adjourned from time to time. On 15 December 2017 this Petition was adjourned to 5 January 2018. Thereafter, it was again adjourned to 15 January 2018 at 3.00 p.m. as it was likely to be finally disposed of on that date. On 15 January 2018 it was adjourned to 19 January 2018 and on 19 January 2018 it was again adjourned to today at 3.00 p.m. 4 When the Petition was called out today, Mr. Suresh Kumar, learned Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2018. This without producing the reasons recorded for issuing the certificate dated 18 May 2017. 8 In the above view and more particularly, as the parties are agreed that the issue herein is identical to the issue in Writ Petition No. 2701 of 2017 (M/s Tata Teleservices (Maharashtra) Limited), which we have allowed, there shall be an adinterim stay of the impugned order dated 23 October 2017 till 2 February 2018." 2 Today, when the matter was called out for final disposal, Mr. Suresh Kumar, learned Counsel for the Revenue states that, Revenue does not desire to file any further affidavit to oppose the Petition. No further submissions to oppose the Petition, is made. 3 We find that the impugned order dated 23rd October, 2017 seeks to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertificate dated 4 May 2017 is completely without jurisdiction. It is not open to the Assessing Officer to even initiate review proceedings in the absence of any change in circumstances which existed while granting certificate dated 4 May 2017. It is not disputed that Section 197(2) of the Act empowers the Assessing Officer to cancel the certificate issued under Section 197(1) of the Act with regard to lower and/or nil withholding tax issued under Section 197(1) of the Act. However, it is submitted that there is no change in the financial and other circumstances as existing when the certificate dated 4 May 2017 was issued and when the impugned order canceling the above certificate was passed. Therefore, the impugned order is without jurisdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 4 May 2017 ought to have been communicated to the Petitioner along with the notice, seeking to review the earlier certificate on account of mistake. In the above circumstances we kept the petition on board for directions on 23 January 2018 as this issue was not addressed by the Revenue at the hearing. In fact the petitioner had contended before us that the Respondent No. 1 had no jurisdiction to cancel the certificate dated 4 May 2017 in the absence of any change in the circumstances. However, we wanted to hear and consider the Revenue's response on the above aspect of jurisdiction. Therefore, on 23 January 2018 we expressed our prima faice view on the issue to the parties, particularly that the absence of the order leading to the grant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 28 AA of the Rules was not considered at the time of granting the Certificate. Further if the Revenue seeks to cancel the same on the ground that a particular aspect has not been considered then before taking a decision to cancel the certificate already granted, it must satisfy the requirement of Natural Justice by giving a copy of the same to the parties and hear them on it before taking decision to cancel the certificate. This is particularly so as in the present facts the show cause notices dated 16 August 2017 and 30 August 2017 seeking to review the Certificate dated 4 May 2017 did not indicate that the review is being done as the Certificate dated 4 May 2017 was granted without considering the applicability of Rule 28 AA of the Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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