Section 197 Application Can’t Be Rejected Solely Due to Outstanding Tax Demand: SC

Make Mytrip (India) Private Limited Vs ACIT (Delhi High Court) Core Issue The principal issue before the Court in Make Mytrip India Pvt Ltd vs ACIT Circle 75(1) Delhi was whether an application under section 197 of the Income-tax Act for grant of a Nil or lower withholding tax certificate can be rejected solely on the basis of outstanding tax demands, without examining the statutory parameters prescribed under Rule 28AA, and without passing a reasoned and speaking order, particularly when (i) the assessee has substantial brought forward losses resulting in nil taxable income, (ii) large...