Petition Withdrawn with Liberty for Fresh Filing upon Payment of Costs

The Court disposed of the petition as withdrawn with liberty to file a fresh petition upon payment of costs amounting to Rs. 75,000. The judgment emphasized the significance of parties providing accurate information and maintaining transparency in legal proceedings to avoid misuse of the court process.

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Issues:
Challenge to order cancelling certificate for lower deduction of tax under Section 197 of the Income Tax Act, 1961; Allegations of misstatement and suppression of facts by petitioner; Examination of whether suppression of hearing being granted was material; Consideration of petitioner's request to withdraw petition and file a fresh one.

Analysis:

1. Challenge to Order Cancelling Certificate: The petitioner challenged an order cancelling the certificate for lower deduction of tax issued under Section 197 of the Income Tax Act, 1961. The petition initially sought to prohibit the Revenue from proceeding with the cancellation, but was later amended following the impugned order dated 11th October, 2017.

2. Allegations of Misstatement and Suppression: The petitioner alleged that no opportunity of hearing was granted before the certificate was cancelled. However, the Revenue contended that a hearing did take place, supported by an order sheet noting and affidavit. The petitioner argued that the hearing was inconclusive, and there was a discrepancy in the records regarding the grant of a hearing.

3. Examination of Material Suppression: The Court emphasized the importance of parties approaching with clean hands and providing accurate information. It analyzed whether the petitioner's statement about no hearing being granted was a material suppression, considering the potential impact on the outcome of the case. The Court found that the suppression of the fact of a hearing being granted was significant in the context of the case.

4. Petitioner's Request to Withdraw Petition: The petitioner, acknowledging the mistake in the petition, requested to withdraw it with liberty to file a fresh one. The Court considered the circumstances and granted the petitioner's request to withdraw the petition. However, the Court imposed a condition of payment of costs amounting to Rs. 75,000 to be paid to the "Zonal Account Office, CBDT, Mumbai" as a prerequisite for filing a fresh petition challenging the impugned order.

In conclusion, the Court disposed of the petition as withdrawn with liberty to file a fresh petition upon payment of the specified costs. The judgment highlighted the importance of parties presenting accurate information and maintaining transparency in legal proceedings to prevent abuse of the court process.

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