2026 (2) TMI 1245

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Int. Tax 1(1)(2) (hereinafter referred to as 'Competent Authority'), so also the consequential certificate dated 20.08.2025, issued under Section 197 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act of 1961'). 2. As pleaded, the petitioner is a company incorporated in the USA and is a tax resident of the USA. It is engaged in providing Beeline Vendor Management System ("VMS"), solutions and services to facilitate sourcing and managing the contingent workforce for their customers through a web-based application delivered through Software as a Service model ("SaaS") for Financial Year (FY) 2025-2026. The petitioner-company had entered into Software Services Agreements with various customers under which, the petitioner is pr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... deduct 15% from the payments made to it. 6. Having apprised the Court about the nature of the transactions, learned Senior Counsel submitted that for Assessment Year (AY) 2024-25, the petitioner had filed its return of income and the same was accepted as such and refund of the tax deducted at source was granted. He further submitted that even for AY 2025-26, the petitioner's return has been processed and refund of the tax deducted at source has been granted. 7. Learned Senior Counsel, therefore, prayed that the impugned order dated 04.03.2025 so also the certificate dated 20.08.2025, which are clearly contrary to the facts involved in the present case and de-hors the clauses of the Agreement and nature of transactions be quashed and ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g the issue emanating from an order and certificate under Section 197 of the Act of 1961, we do not propose to record any finding which may prejudice the case of either of the parties. However, since no authority including the Assessing Authority has so far considered the nature of transactions and other relevant material, as an Adjudicating Authority, we are not inclined to issue direction to issue a certificate at 'NIL' rate, as prayed by Mr. Sachit Jolly. 12. The writ petition is, therefore, partly allowed. While quashing the order dated 04.03.2025 and the certificate dated 20.08.2025, we hereby direct the Competent Authority to issue a certificate at 2% so that the assessee is required to file its return and the petitioner's case....