https://www.taxtmi.com/caselaws?id=445814 The Karnataka HC quashed the AO's rejection of petitioner's Section 197(1) certificate application for lower tax deduction. The AO had rejected the application solely because petitioner failed to file returns for four preceding years (2019-20 to 2022-23) before the subject financial year 2023-24. The HC held that under Section 197(1) read with Rule 28AA, the AO must record objective satisfaction determining existing and estimated liability of the assessee, considering prescribed factors including tax payable for four previous years, existing liability, and advance tax payments. The rejection based only on non-filing of returns without proper examination of circumstances under Rule 28AA was improper. The matter was remanded for fresh consideration. en-us Fri, 22 Sep 2023 00:00:00 +0530 Fri, 12 Jul 2024 12:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445814 The Karnataka HC quashed the AO's rejection of petitioner's Section 197(1) certificate application for lower tax deduction. The AO had rejected the application solely because petitioner failed to file returns for four preceding years (2019-20 to 2022-23) before the subject financial year 2023-24. The HC held that under Section 197(1) read with Rule 28AA, the AO must record objective satisfaction determining existing and estimated liability of the assessee, considering prescribed factors including tax payable for four previous years, existing liability, and advance tax payments. The rejection based only on non-filing of returns without proper examination of circumstances under Rule 28AA was improper. The matter was remanded for fresh consideration. Case-Laws Income Tax Fri, 22 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445814