Manpowergroup Services India Pvt. Ltd. v. Commissioner of Income-tax (TDS)-1 New Delhi & Anr
[Citation -2020-LL-0724-1]

Citation 2020-LL-0724-1
Appellant Name Manpowergroup Services India Pvt. Ltd.
Respondent Name Commissioner of Income-tax (TDS)-1 New Delhi & Anr.
Court HIGH COURT OF DELHI AT NEW DELHI
Relevant Act Income-tax
Date of Order 24/07/2020
Judgment View Judgment
Keyword Tags deduction of tax at source • rule of consistency • profit margin • rate of tax • tax payable
Bot Summary: The petition has been listed before this Bench by the Registry in view of the urgency expressed therein. Present writ petition has been filed challenging the order dated 29 th June, 2020 passed by respondent No.2 under Section 197 of the Income Tax Act refusing to grant a certificate of deduction of tax at source at NIL rate, on payments to the petitioner company by its customers. Learned counsel for petitioner contends that the impugned order is contrary to the rule of consistency as the 1.50 rate with respect to payment W.P. 4511/2020 Page 1 of 3 under Section 194J and 194I of the Income Tax Act, 1961, specified in the impugned order is three times higher than the 0.50 rate of tax deduction at source determined in the immediately preceding year by the respondent itself. She further states that the petitioner had in its own application for grant of certificate of deduction of tax at source at NIL rate under Section 197 of the Income Tax Act, 1961 had mentioned the applicable rates as 2 and/or 10 during Financial Year 2020-21. She also states that the projected gross receipts during this Financial Year 2020-21 is projected to be 78 more than the preceding year according to the petitioner itself. Since detailed reasons are stated to be available on record, the present writ petition and the pending application are disposed of with a direction to the respondents to furnish a copy of the reasons to the petitioner within a week. In the event the petitioner is aggrieved by the said reasoned order, it shall be open to the petitioner to file appropriate legal proceedings in accordance with law.


#3 $ * IN HIGH COURT OF DELHI AT NEW DELHI + W.P. (C) 4511/2020 & CM APPL.16244/2020 MANPOWERGROUP SERVICES INDIA PVT. LTD. Petitioner Through: Mr. Piyush Kaushik, Advocate versus COMMISSIONER OF INCOME TAX (TDS)-1 NEW DELHI & ANR. Respondents Through: Ms. Lakshmi Gurung and Mr. Talha Abdul Rahman, Advocates % Date of Decision: 24th July, 2020 CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE SANJEEV NARULA JUDGMENT MANMOHAN, J: (Oral) 1. petition has been listed before this Bench by Registry in view of urgency expressed therein. same has been heard by way of video conferencing. 2. Present writ petition has been filed challenging order dated 29 th June, 2020 passed by respondent No.2 under Section 197 of Income Tax Act refusing to grant certificate of deduction of tax at source at NIL rate, on payments to petitioner company by its customers. 3. Learned counsel for petitioner contends that impugned order is contrary to rule of consistency as 1.50% rate with respect to payment W.P. (C) 4511/2020 Page 1 of 3 under Section 194J and 194I of Income Tax Act, 1961, specified in impugned order is three times higher than 0.50% rate of tax deduction at source determined in immediately preceding year by respondent itself. 4. He submits that impugned order is non-speaking and non- reasoned order passed without dealing with justifications and workings submitted by petitioner. He states that petitioner company has been operating on low profit margin ranging from 0.26% to 1.78% over past six years and tax payable on assessed income of preceding four years itself comes at very low figure of 0.18%. He further states that ratio of tax withholding to profits has been as high as 1758% in recent past. 5. Issue notice. 6. Ms. Lakshmi Gurung, learned counsel accepts notice on behalf of respondents. She states that respondents while issuing impugned certificate has placed detailed reasons on record. She further states that petitioner had in its own application for grant of certificate of deduction of tax at source at NIL rate under Section 197 of Income Tax Act, 1961 had mentioned applicable rates as 2% and/or 10% during Financial Year 2020-21. She also states that projected gross receipts during this Financial Year 2020-21 is projected to be 78% more than preceding year according to petitioner itself. 7. Since detailed reasons are stated to be available on record, present writ petition and pending application are disposed of with direction to respondents to furnish copy of reasons to petitioner within week. W.P. (C) 4511/2020 Page 2 of 3 8. In event petitioner is aggrieved by said reasoned order, it shall be open to petitioner to file appropriate legal proceedings in accordance with law. It is clarified that all rights and contentions of parties are left open. 9. order be uploaded on website forthwith. Copy of order be also forwarded to learned counsel through e-mail. MANMOHAN, J SANJEEV NARULA, J JULY 24, 2020 rn W.P. (C) 4511/2020 Page 3 of 3 Manpowergroup Services India Pvt. Ltd. v. Commissioner of Income-tax (TDS)-1 New Delhi & Anr
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