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January 2013

TDS: F. Y. 2012-13: Certificate u/s. 197: Cannot be denied on the ground that the assessee had violated the provisions of TDS and proceedings u/ss. 276B and 271C were pending:

By K. B. Bhujle, Advocate
Reading Time 1 mins
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[Serco BPO (P) Ltd. Vs. ACIT ; 253CTR 410 (P&H):]

On 03/04/2012, the assessee filed an application u/s. 197 of the Income-tax Act, 1961 for issuance of a Nil tax deduction certificate for the F.Y. 2012-13. The application was rejected on the ground that proceedings u/ss. 276B and 271C of the Act were pending.

The Punjab and Haryana High Court allowed the writ petition filed by the assessee and held as under:

“i) Issue of certificate u/s. 197(1) of the Act is mandatory on fulfillment of conditions enumerated under the rules.

ii) Rejection of application of assessee on the ground that the assessee had violated the provisions of TDS and proceedings u/ss. 276B and 271C were pending was not sustainable. None of these grounds validly form part of reasons for rejecting an application filed by an assessee u/s. 197(1) r/w. r. 28AA.

iii) The Assessing Officer is directed to redecide the application within a period of two weeks.”

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