Pending Tax Demand not Justify Section 197 Lower TDS application Rejection

Infrastructure Development Authority vs ACIT (Patna High Courts) In the case of Infrastructure Development Authority vs ACIT, the Patna High Court addressed the rejection of applications filed under Section 197 of the Income Tax Act by the Assessing Officer (AO), which sought a nil TDS deduction on interest income from banks. The AO’s decision, based on an outstanding tax demand for the assessment year 2018-19, led to the rejection of the application on the grounds that the pending demand precluded the granting of a lower or nil rate of TDS. However, the petitioner argued that the demand...