9911796707
TMI Blog2023 (11) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... the business of retail trade of goods through e-commerce platforms seeks to challenge a certificate dated 29.05.2023 issued by Respondent No. 1 i.e., the Deputy Commissioner of Income Tax TDS Circle 77(1) rendered under Section 197 of the Income Tax Act, 1961 (the "IT Act") (the "Impugned Order") read with a letter dated 29.05.2023 addressed to the Petitioner by Respondent No. 1 (the "Impugned Letter") (hereinafter, the Impugned Order and the Impugned Letter shall, collectively be referred to as the "Impugned Actions"). 2. The facts of this case reveal that the Petitioner filed application an application dated 01.03.2023 under Section 197 of the IT Act along with Form-13 of the Income Tax Rules, 1961 (the "IT Rules") seeking a lower deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ian Rupees One Crore Four Lakh) as against a projected revenue from operations of INR 8810,00,00,000 (Indian Rupees Eight Thousand Eight Hundred Ten Crore); c) In FY '19-20, '20-21 and '21-22 the tax to turnover ratio of the Petitioner was 0.01% (zero point zero one per cent); and d) That the Petitioner has projected a tax refund to the extent of INR 45,05,00,000 (Indian Rupees Forty Five Crore Five Lakh) under a 0.5% (zero point five per cent) rate of deduction of TDS. 5. Thereafter, on 19.04.2023 certain additional queries were raised by Respondent No. 1 in relation to discrepancies between the projected gross turnover of the Petitioner for FY '22-23. The same was duly responded to by the Petitioner vide a reply dated 24.04.2023. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issuance of an LDC is not a matter of right and that the issuance of an LDC is an exception to the rigors of Section 192-195 of the IT Act. Accordingly, he submits that the onus to justify the grant of relief under Section 197 of the IT Act falls squarely upon the Petitioner, which according to him has not been appropriately discharged. 10. Accordingly, it has been contended that (i) the projected accounts of the Petitioner for FY '22-23 were found to be unreliable; (ii) the Petitioner has a history of TDS default; and (iii) the rate of TDS requested by the Petitioner i.e., 0.01% (zero point zero one per cent) is wholly unreasonable. 11. We have heard the counsel(s) for the parties and perused the documents placed on record. 12. Per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to court on account of a challenge, get validated by additional grounds later brought out. We may here draw attention to the observations of Bose, J. in Gordhandas Bhanji [Commr. of Police, Bombay v. Gordhandas Bhanji, 1951 SCC 1088 : AIR 1952 SC 16] : "Public orders, publicly made, in exercise of a statutory authority cannot be construed in the light of explanations subsequently given by the officer making the order of what he meant, or of what was in his mind, or what he intended to do. Public orders made by public authorities are meant to have public effect and are intended to affect the actings and conduct of those to whom they are addressed and must be construed objectively with reference to the language used in the order itself." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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