Section 197 TDS Rate Cannot Be Raised Once PE Finding Is Set Aside: Delhi High Court

GE Energy Parts INC Vs ACIT & Anr. (Delhi High Court) The Delhi High Court allowed the writ petitions filed by GE Energy Parts Inc. and GE Global Parts and Products GmbH, quashing the Assessing Officer’s order directing deduction of tax at source at 3.5% under Section 197 for AY 2025–26. The petitioners, non-resident companies engaged in offshore supply and repair of gas turbine parts, consistently claimed that they had no Permanent Establishment (PE) in India and had been granted lower-rate TDS certificates at 1.5% in earlier years, including pursuant to earlier High Court directions....