Withholding Tax Certificate: authority ordered to reissue at a lower rate and permit return filing subject to CBDT scrutiny.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The text addresses applications under section 197 for determination of withholding tax rate, emphasising that the competent authority must consider the nature of transactions and relevant material before fixing a NIL or other rate; the court declined to direct issuance of a NIL certificate because no authority had examined transaction nature. The court quashed the earlier administrative order and certificate and directed reissuance of a certificate at a lower rate so the assessee must file returns and may be subjected to scrutiny under CBDT criteria; it also ordered time limits for issuing the certificate and for future applications to be decided within the prescribed period.....