Manpowergroup Services India Pvt. Ltd. v. Commissioner of Income-tax (TDS)-1 New Delhi & Anr
|Manpowergroup Services India Pvt. Ltd.
|Commissioner of Income-tax (TDS)-1 New Delhi & Anr.
|HIGH COURT OF DELHI AT NEW DELHI
|Date of Order
|deduction of tax at source • rule of consistency • profit margin • rate of tax • tax payable
|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.