Case Law Details
Coforge Solutions Pvt. Ltd. Vs DCIT (TDS) Gurugram (Punjab and Haryana High Court)
In the realm of taxation and corporate compliance, legal battles often arise when companies seek favorable treatment under the law. Such disputes can have significant financial implications and legal ramifications. One such case that warrants a detailed analysis is the legal tussle between Coforge Solutions Pvt. Ltd. and the Deputy Commissioner of Income Tax (TDS) Gurugram (DCIT), revolving around a tax deduction certificate under Section 197 of the Income Tax Act, 1961.
Background:
Coforge Solutions Pvt. Ltd., a company engaged in providing information technology and IT-enabled services, found itself in a predicament regarding tax deductions for the financial year 2022-23. To mitigate tax deductions at source, the company filed an application under Section 197 of the Income Tax Act, 1961. The essence of this application was to request a lower tax deduction certificate, which would reduce the tax liability on sums receivable for the period from January 2023 to March 2023.
The company submitted Form 13, a standard form for such applications, along with estimates of their total income and tax liability. These estimates formed the foundation of their plea for reduced tax deductions. However, despite having already paid a substantial amount of tax in advance, the company’s application was met with a rejection by the DCIT.
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