Court Allows Fresh Application for Tax Certificate After Challenge to 15% Withholding Rate for FY 2023-24.

The HC disposed of the writ petition challenging the certification under Section 197 of the Income Tax Act for FY 2023-24, where a 15% withholding tax rate was prescribed instead of a "Nil" certificate. The court allowed the petitioner to apply afresh for FY 2024-25, ensuring independent consideration and preserving the right to challenge any adverse orders. If successful, the petitioner may claim the benefit of CBDT Circular No.E/257.

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Issues involved: Validity of certification u/s 197 of Income Tax Act for FY 2023-24, Grant of "Nil" withholding tax certificate, Disposal of instant writ petition, Liberty to apply afresh u/s 197 for FY 2024-25, Entitlement to benefit of CBDT Circular No.E/257.

Validity of certification u/s 197 of Income Tax Act for FY 2023-24:
The instant writ petition challenges the certification issued u/s 197 of the Income Tax Act for FY 2023-24. The respondent prescribed a withholding tax rate of 15% instead of granting a "Nil" withholding tax certificate. However, since FY 2023-24 has ended, the court finds no justification to continue the petition. The petitioner is granted liberty to apply afresh u/s 197 for FY 2024-25, which will be examined independently, keeping all rights and contentions open.

Grant of "Nil" withholding tax certificate:
The respondent's decision to prescribe a 15% withholding tax rate instead of granting a "Nil" withholding tax certificate is noted. As FY 2023-24 has concluded, the court disposes of the instant writ petition, allowing the petitioner to apply afresh for FY 2024-25 u/s 197 of the Act. Any new application will be considered independently, and the petitioner retains the right to challenge any adverse orders.

Disposal of instant writ petition:
The court disposes of the instant writ petition concerning the certification u/s 197 for FY 2023-24. The petitioner is granted liberty to apply afresh for FY 2024-25 under Section 197 of the Act. If successful, the petitioner can claim the benefit of CBDT Circular No.E/257 dated 12 September 2014. The petitioner is also reserved the right to challenge the impugned order and any subsequent adverse decisions.

Liberty to apply afresh u/s 197 for FY 2024-25:
The instant writ petition is disposed of, allowing the petitioner to apply afresh u/s 197 for FY 2024-25. Any new application will be reviewed independently, safeguarding the interests of the petitioner. The petitioner is entitled to claim the benefit of CBDT Circular No.E/257 if successful and retains the right to challenge any adverse orders.

Entitlement to benefit of CBDT Circular No.E/257:
In case of success in the fresh application u/s 197 for FY 2024-25, the petitioner can claim the benefit of CBDT Circular No.E/257 dated 12 September 2014. To protect the petitioner's interests, the court reserves the liberty to challenge the impugned order and subsequent adverse decisions.

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