SC refers matter to larger bench to decide issue whether assessee can challenge certificate issued u/s 197

Case Details: National Petroleum Construction Co. v. DCIT - [2022] 140 taxmann.com 659 (SC)

Judiciary and Counsel Details

• • Indira Banerjee & J.K. Maheshwari, JJ.

Facts of the Case

The instant petition was filed by assessee before the Supreme Court against the order High Court dismissing the writ petition filed to modify certificate issued under section 197.

Supreme Court Held

The two Judges of the Supreme Court express divergent views on the issue.

Justice Indira Banerjee held that there was no such infirmity in the reasoning of the High Court which calls for interference of this Court under Article 136 of the Constitution of India. As rightly held by the High Court, since the Appellant requested issuance of Certificate for deduction of TDS at 4% of the taxable value it is not for the Appellant to challenge the certificate.

Whereas on the other hand, J.K. Maheshwari held that letter by the assessee requesting for issue of certificate for deduction of TDS @4% cannot influence the wisdom of the Court, where the prescribed procedure under Rule 28AA has not been followed by the Assessing Officer.

In view of the difference of opinion between the two learned Judges, the Supreme Court of India has directed the Registry to place the matter before Hon’ble the Chief Justice of India so that an appropriate Bench could be constituted to hear the matter.