Application u/s 197 for issuance of a Lower Deduction of Tax...

Application u/s 197 for issuance of a Lower Deduction of Tax Certificate - The High Court observed that, a plain reading of Rule 28-AA makes it clear that the 'satisfaction' needs to be recorded/determined by A.O. after taking into consideration the four factors mentioned in sub-rule (2) of Rule 28-AA. Thus, it is not the subjective satisfaction of A.O., but an objective satisfaction which must be based on Clauses (i), (ii), (iii) and (iv) of sub-rule (2) of Rule 28-AA. - Since impugned orders are passed in clear violation of Rule 28-AA, the High Court held that decision making process adopted by the respondents runs contrary to the requirement of law, i.e. Rule 28-AA. - Matter restored back for readjudication.

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