2026 (2) TMI 711

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....d the order dated 19.08.2025 passed by and consequential certificate of even date issued by respondent No. 1-Assistant Commissioner of Income Tax, Circle Int Tax 1(1)(1), Delhi (hereinafter referred to as the 'Competent Authority) under Section 197 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act of 1961'). 2. As per the petitioner, it is engaged in the business of providing corporate and management services, in terms of the agreement with its Associate Enterprise (AE) i.e. AECOM India Private Limited. The petitioner provides management and governance support functions in the area of legal, tax, treasury, finance, information technology, human resources, enterprise risk management, etc. 3. Mr. Manuj Sabharwal, learned ....

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....holding certificate at 'nil' rate. 6. Learned counsel for the respondent-Department though made all endeavours to oppose the petitioner's writ petition but, could not controvert the factual assertions made at bar by Mr. Manuj Sabharwal, learned counsel for the petitioner. 7. Heard learned counsel for the parties and perused the record more particularly, the impugned order dated 19.08.2025. 8. On going through the entire order, we find that the Competent Authority has neither disputed the nature of the transaction nor has he recorded any finding about the taxability of the transaction, which the petitioner has undertaken with its AE-AECOM India Private Limited. Even petitioner's assertion/contention that his earlier writ petition wa....

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....ck on the doors of this Court and for the payments qua the transactions taking place from 01.04.2025 until today, a tax at the rate of 15% has been deducted from it. What concerns us the most is, that even if we allow the petition which we are otherwise inclined to, issuance of certificate will take at least ten to fifteen days and the deduction at nil rate will be applicable only from the date of issuance of certificate. We are so pained to find that a period of 11 months out of 12 months has already elapsed in this process. 12. The approach of the Competent Authority has practically rendered the mandate and provisions of Section 197 of the Act of 1961, a waste piece of paper. Provisions of Section 197 of the Act of 1961 were enacted wi....

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....t or any other superior Court, a fresh certificate (may be in the name of revised or amended rate) can be issued by the competent authority within the time allowed by the High Court, without requiring a fresh application to be filed. 16. A copy of this order be forthwith sent to the Chairman CBDT in order to issue proper guidelines and circular so as to ward off the difficulties and hurdles which are being faced by the bona fide entities/assessees. 17. Instant direction shall also be considered by the CBDT or the Principal Chief Commissioner while considering the direction given by us on 29.01.2026 in Writ Petition No. 70857/2025. For the sake of ready reference, paragraph No. 24 of the said order is reproduced hereinbelow:- ....