Virtual Service PE Not Valid Ground to Deny Nil Withholding Certificate: Delhi HC

Ernst And Young LLP Vs ACIT (Delhi High Court) The Delhi High Court considered a writ petition challenging a certificate and order dated 17.09.2025 issued under Section 195 of the Income Tax Act, 1961. By the impugned order, the Assessing Officer authorised the petitioner to make payments to its UK-based group entity by withholding tax at the rate of 5.25%, rejecting the petitioner’s request for a Nil Withholding Certificate for prospective payments up to 31.03.2026. The rejection was based on the conclusion that the payments constituted business income taxable in India due to the existence ...