Mr. Raghvendra Singh, Learned Senior Standing Counsel, On Instructions,States That The Present Petition May Be Disposed Of In Terms Of The Order Dated06.09.2019 v. Deputy Commissioner Of Income Tax & Ors

$~58 *IN THE HIGH COURT OF DELHI AT NEW DELHI+W.P.(C) 9054/2019 & C.M. No. 37407/2019JIANGSU ZHONGTIAN CO LTD ..... Petitioner Through:Mr. Abhimanyu Jhamba, Advocatewith Ms. Hemlata Ranga, Advocate.versusDEPUTY COMMISSIONER OF INCOME TAX & ORS..... RespondentsThrough:Mr.RaghvendraSingh,SeniorStanding Counsel with Mr. VipulAgrawal, Junior Standing Counsel forIncome Tax Department. CORAM:HON'BLE MR. JUSTICE VIPIN SANGHIHON'BLE MR. JUSTICE SANJEEV NARULAO R D E R%10.10.2019 1. Mr. Raghvendra Singh, learned Senior Standing Counsel, on instructions,states that the present petition may be disposed of in terms of the order dated06.09.2019 passed by this Court in W.P.(C) 9389/2019 Jiangdong FittingsEquipment Co. Ltd v. Deputy Commissioner of Income Tax & Ors. 2. The grievance of the Petitioner relates to issuance of certificate underSection 197 (1) whereby the rate of deduction of tax at source has beenraised from 1% to 4%. 3. The Petitioner claims that the sudden rise of the rate at which the TDS isto be deducted is arbitrary and no reasons for the same have beencommunicated to the Petitioner, much less any hearing has been granted tothe Petitioner. 4.While deciding Jiangdong Fittings Equipment Co. Ltd v. DeputyCommissioner of Income Tax & Ors.(supra), we have held, after takingnote of the earlier decisions in Bently Nevada LLC v. Income Tax Officer, Ward-1(1)(2), International Taxation & Another, W.P.(C) No. 7744/2019decided on 29.07.2019 of this Court and the decision of the Bombay HighCourt in Tata Teleservices (Maharashtra) Ltd v. Deputy Commissioner ofIncome Tax (TDS), (2018) 402 ITR 384 (Bom), that Section 197 (1) doesnot require the Assessing Officer to grant personal hearing to the assesseeprior to the issuance of the certificate. All that is required is that theAssessing Officer should have good reasons to issue the certificate underSection 197 (1) of the Act and the said reasons should be communicated tothe assessee. 5. Mr. Raghvendra Singh, learned Senior Standing Counsel, on instructions,states that the standard operating procedure has now been formulated toprovide that whenever there is an upward revision of the rate of deduction atsource while issuing the certificate under Section 197(1) of the Act, theasseseee would be communicated the reasons for the same. 6. In view of the aforesaid, we dispose of this petition with a direction to theRespondents to provide to the Petitioner, within one week, the reasonsrecorded for issuance of the impugned certificate fixing the rate of deductionof TDS at 4%. It shall be open to the Petitioner to assail the said reasons incase the Petitioner is aggrieved thereby. 7. The Petition stands disposed of in the aforesaid terms. 8. Dasti. VIPIN SANGHI, J OCTOBER 10, 2019/ss SANJEEV NARULA, J