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“Section 197(1)”

Section References (mined)Section 197Section 197(1)31 judgments

The decision most relied on for Section 197(1) is State Lotteries & Ors. (2001) 249 ITR 186 and Ahmedabad Stamp Vendors Association v. Union of India (257 ITR 202), cited in 121 judgments on BharatTax.

Leading authorities on Section 197(1)

State Lotteries & Ors. (2001) 249 ITR 186 and Ahmedabad Stamp Vendors Association v. Union of India
257 ITR 202 · 2002 · High Court
121
citing judgments

Supplementary commission forional or extra services does not fall within the ambit of Section 194H of the Income Tax Act, 1961. This may affect the applicability of certificates issued under Section 197.

CIT v. Calcutta Export Company
404 ITR 654 · 2018 · Supreme Court
93
citing judgments

The amendment to Section 40(a)(ia) by the Finance Act, 2010, making TDS remittance before the due date under Section 139(1) a condition for deduction, is retrospective from AY 2005-06. Procedural lapses should not lead to excessive disallowances, particularly when payment has been made to a resident.

M/s Puri Construction Private Limited v. Addl. CIT & Ors.
159 Taxmann.com 444 · 2024 · High Court
42
citing judgments

External Development Charges (EDC) paid by a developer to a government body like Haryana Shahari Vikas Pradhikaran (HSVP) for a development project are contractual payments, making them liable for tax deduction at source under Section 194C of the Income-tax Act, 1961.

Escorts Ltd. v. DCIT
15 SOT 368 · 2007 · ITAT
39
citing judgments

An assessee is entitled to credit for Tax Deducted at Source (TDS) even if the income in respect of which TDS was deducted is not disclosed in the return. The Income-tax Department cannot deny TDS credit solely on the grounds that the income was not offered to tax.

Bir Bahadur Singh Sijwali v. ITO
68 SOT 197 · 2015 · ITAT
35
citing judgments

Mere cash deposits in a bank account, without further tangible material, are not sufficient on their own to invoke reassessment proceedings under Section 147 of the Income Tax Act. There must be tangible material and application of mind to form a 'reason to believe' that income has escaped assessment.

Supreme Renewable Energy Ltd. v. ITO
3 ITR (Trib) 339 · 2010 · ITAT
35
citing judgments

Once Tax Deducted at Source (TDS) is deducted and paid to the Central Government, credit for such tax must be given to the assessee, irrespective of the assessment year to which it relates. This principle applies even to amended provisions of Section 199(1) of the Income Tax Act, 1961.

ITO: 288 CTR 579 (Guj) CIT v Smt. Jaya Lakshmi Ammal: 390 ITR 189 (Mad) PCIT v. Best Infrastructure (India) Pvt. Ltd.
197 CTR 536 · 2005 · High Court
21
citing judgments

This case stands for the proposition that evidence gathered during a search under section 132, particularly statements recorded under section 132(4), can be used in subsequent assessment proceedings.

Additional Director of Income Tax (IT) v. Mark & Spencer Reliance India (P) Ltd.
38 Taxmann.com 190 · 2013 · Reported
21
citing judgments

Part reimbursement of expenses does not constitute income if the services rendered are under the direct control and supervision of the recipient.

Judgments citing Section 197(1)

Superhouse Limited, Kanpur vs. CIT, International Taxation-3, Delhi

In the result, both appeals of the assessee are allowed

ITA 356/LKW/2024[2014-15]Status: DisposedITAT Lucknow25 Feb 2026AY 2014-15

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharyita Nos. 356 & 357/Lkw/2024 A.Ys. 2014-15 & A.Ys. 2015-16 Superhouse Limited, 150 Feet Vs. The Commissioner Of Income Tax Road, Jajmau, Kanpur-208010 International Taxation-3, Delhi Pan: Aabcs9328K (Appellant) (Respondent) Assessee By: Sh. G.C. Srivastava, Adv & Sh. Kalrav Mehrotra, Adv Revenue By: Sh. R.K. Agarwal, Cit Dr Date Of Hearing: 03.12.2025 Date Of Pronouncement: 25.02.2026 O R D E R Per Nikhil Choudhary, A.M.: These Two Appeals Have Been Filed By The Assessee Against The Orders Of The Cit, (International Taxation)-3, Delhi Passed Under Section 263 Of The Act For The A.Ys. 2014-15 & 2015-16, Both Dated 29.03.2024, Wherein The Ld. Cit Has Set Aside The Earlier Orders Of The Assessing Officer For Making Of Fresh Orders In Accordance With The Directions Issued By Her. The Grounds Of Appeal Are As Under:- “1. Because, On The Facts & Circumstances Of The Case & In Law, The Ld. Cit Has Erred In Assuming Jurisdiction Under Section 263 Of The Act & In Doing So, Has Sought To Substitute His Opinion With The Order Under Section 201(1)/201(1A) Passed After Undertaking Extensive & Detailed Consideration Of The Issue By The Ito (Tds). 2. Because, On The Facts & Circumstances Of The Case & In Law, The Ld. Cit Has Erred In Assuming The Jurisdiction Under Section 263 Of The Act Without Appreciating That The Order Under Section 201(1)/201(1A) Passed By The Ito (Tds) Was Unerring & In Consonance With The Settled Principles Of Law. 3. Because, On The Facts & Circumstances Of The Case & In Law, The Impugned Order While Premised On An Illegal Assumption Of Jurisdiction, Further Suffers From Non-Application Of Mind Since The Submissions Of The Assessee Have Not Been Considered [As Illustrated Infra]. A.Ys. 2014-15 & 2015-16

For Appellant: Sh. G.C. Srivastava, Adv & Sh. KalravFor Respondent: Sh. R.K. Agarwal, CIT DR
Section 201(1)Section 263Section 90

A.Ys. 2014-15 & 2015-16 b. Copy of Form No. 15CA / CB or order under section 195(2)/195(3) or certificates under section 197(1) of the Income Tax Act, 1961. c. Copies of profit/loss account and balance-sheet. d. Copies of ledgers of all foreign parties to whom

Franklin Templeton International Services (India) P.Ltd, Mumbai vs. DCIT Cir 6(3)(1), Mumbai

ITA 1495/MUM/2015[2010-11]Status: DisposedITAT Mumbai20 Feb 2026AY 2010-11

Bench: Smt. Beena Pillai () & Shri Girish Agrawal ()

Section 133(6)Section 92D

directed by the Hon'ble DRP, erroneously overlooked that no TDS was applicable on payments made to Kone based on the certificates under section 197(1) of the Act authorizing non-deduction of TDS from payments to Kone, copies of which were submitted by the Appellant

Franklin Templeton International Services (India) P.Ltd, Mumbai vs. DCIT Cir 3(1), Mumbai

In the result, appeals filed by the assessee stands partly allowed

ITA 2047/MUM/2014[2009-10]Status: DisposedITAT Mumbai20 Feb 2026AY 2009-10

Bench: Smt. Beena Pillai () & Shri Girish Agrawal ()

Section 133(6)Section 92D

directed by the Hon'ble DRP, erroneously overlooked that no TDS was applicable on payments made to Kone based on the certificates under section 197(1) of the Act authorizing non-deduction of TDS from payments to Kone, copies of which were submitted by the Appellant

Colo Colour Private Limited, Mumbai vs. Income Tax Officer- Ward 6(2)(1), Mumbai

In the result, the appeal of In the result, the appeal of the assessee is allowed for the assessee is allowed for statistical purposes

ITA 817/MUM/2024[2018-19]Status: DisposedITAT Mumbai26 Sept 2024AY 2018-19

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2018-19 Colo Colour Pvt. Ltd., Ito-Ward-6(2)(1), 1St Floor, Dadar Departmental Stores, Aayakar Bhavan, Vs. M.C. Jawale Marg, Dadar West, Mumbai-400021. Mumbai-400028. Pan No. Aabcc 3349 L Appellant Respondent

For Appellant: Mr. Krishnakumar, Sr. DRFor Respondent: Ms. Dinkle Hariya
Section 197Section 40

provisions of section 197(1B) Appellant has not taken into consideration provisions of section 197(1B) which clearly lays down that provisions of section 197(1)/197(1A) are not lays down that provisions of section 197(1)/197(1A) are not lays down that provisions of section 197(1

Deutsche Equities India Pvt. Ltd., Mumbai vs. Addl.C.I.T. RG. 4(1), Mumbai

ITA 8354/MUM/2011[2005-06]Status: DisposedITAT Mumbai08 Jul 2024AY 2005-06
For Appellant: Shri Anil SantFor Respondent: Shri P.J. Pardiwala
Section 143(3)Section 14ASection 40Section 92D

action of the Assessing Officer. In appeal before the Tribunal it was submitted that the M/s Team Lease had obtained a certificate under Section 197(1) of the Act for receiving income from various parties without deduction of tax at source for the relevant assessment year. On account ... behalf of the Revenue. In absence of a valid/proper ‘Nil’ tax withholding certificate (containing the name of the Assessee) having been issued under Section 197(1) of the Act for the relevant previous year, the Assessee was under obligation to deduct tax at source

DCIT 4(1), Mumbai vs. Deutsche Equities India P.Ltd, Mumbai

ITA 8033/MUM/2011[2005-06]Status: DisposedITAT Mumbai08 Jul 2024AY 2005-06

Bench: SHRI B.R. BASKARAN, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Anil SantFor Respondent: Shri P.J. Pardiwala
Section 143(3)Section 14ASection 40Section 92D

Assessing Officer. 6.2. In appeal before the Tribunal it was submitted that the M/s Team Lease had obtained a certificate under Section 197(1) of the Act for receiving income from various parties without deduction of tax at source for the relevant assessment year. On account of a procedural lapse ... behalf of the Revenue. In absence of a valid/proper ‘Nil’ tax withholding certificate (containing the name of the Assessee) having been issued under Section 197(1) of the Act for the relevant previous year, the Assessee was under obligation to deduct tax at source CO No. 227/Mum/2012 (Assessment Year

Rising Retails(P)Ltd, Kolkata vs. ITO, Ward-4(1), Kolkata

In the result, appeal of the assessee is dismissed

ITA 1005/KOL/2023[2011-12]Status: DisposedITAT Kolkata31 Jan 2024AY 2011-12

Bench: Shri Sonjoy Sarma & Shri Girish Agrawalassessment Year: 2011-12

For Appellant: N o n eFor Respondent: Shri S. Datta, CIT, DR
Section 142(1)Section 143(2)Section 144Section 147Section 148Section 194CSection 197(1)Section 250Section 40a

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA BEFORE SHRI SONJOY SARMA, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT

Bharat Bhushan, Karnal Haryana vs. ITO, Ward-1, Karnal

In the result, all the appeals of the assessee are allowed

ITA 2715/DEL/2023[218-19]Status: DisposedITAT Delhi16 Nov 2023

Bench: Dr. B. R. R. Kumar

For Appellant: NoneFor Respondent: Shri Atiq Ahmed, Sr. DR
Section 10(37)Section 10(37)(i)Section 28

payable to the petitioner by way of interest under section 28 of the Act of 1894. The petitioner made an application under section 197(1) of the Income Tax Act, 1961 (Act) for deciding the tax liability of interest and to issue a certificate as to NIL tax liability

Ashwani Kumar, Gurugram vs. ITO, Ward-1(3), Gurgaon

In the result, all the appeals of the assessee are allowed

ITA 1728/DEL/2022[2018-19]Status: DisposedITAT Delhi16 Nov 2023AY 2018-19

Bench: Dr. B. R. R. Kumar

For Appellant: Shri M.R Sahu, CAFor Respondent: Shri Atiq Ahmed, Sr. DR
Section 10(37)Section 10(37)(i)Section 28

payable to the petitioner by way of interest under section 28 of the Act of 1894. The petitioner made an application under section 197(1) of the Income Tax Act, 1961 (Act) for deciding the tax liability of interest and to issue a certificate as to NIL tax liability

DCIT, Corporate Circle-1(1), Bhubaneswar vs. M/S. Gridco Limited, Bhubaneswar

In the result, appeal of the revenue stands dismissed

ITA 298/CTK/2016[2010-11]Status: DisposedITAT Cuttack20 Feb 2023AY 2010-11

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaassessment Year :2010-2011 2011 Dcit, Corporate Circle Dcit, Corporate Circle-1(1), Vs. Grid Corporation Of Orissa Grid Corporation Of Orissa Bhubaneswar Bhubaneswar Ltd., Ltd., Gridco Gridco House, House, Janapath, Bhubaneswar Janapath, Bhubaneswar. Pan/Gir No. Pan/Gir No.Aabcg 5398 P (Appellant (Appellant) .. ( Respondent Respondent) Assessee By : S/Shri Ved Jain/P.Venugopal Rao /P.Venugopal Rao, Ars Revenue By : Shri M.K.Gautam, M.K.Gautam, Cit Dr Date Of Hearing : 20/0 02/2023 Date Of Pronouncement : 20/0 /02/2023 O R D E R Per Bench This Is An Appeal Filed By The Revenue Against The Order Of The Ld Against The Order Of The Ld Cit(A)-1, Bhubaneswar, 1, Bhubaneswar, Dated 9.5.2016 In Appeal No. In Appeal No.0493/14-15 For The Assessment Year Assessment Year 2010-2011. 2. S/Shri Ved Jain & P.Venugopal Rao, S/Shri Ved Jain & P.Venugopal Rao, Ld Ar Ld Ars Appeared For The Assessee & Shri M.K.Gautam, Ld Cit Dr Appeared For The Revenue. Assessee & Shri M.K.Gautam, Ld Cit Dr Appeared For The Revenue. Assessee & Shri M.K.Gautam, Ld Cit Dr Appeared For The Revenue.

For Appellant: S/Shri Ved Jain/P.Venugopal RaoFor Respondent: Shri M.K.Gautam
Section 194Section 194JSection 197(1)Section 40

IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH

M/S. United Breweries Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 12(5), Bangalore

In the result, both the appeals of the assessee are partly allowed

ITA 126/BANG/2020[2011-12]Status: DisposedITAT Bangalore20 Oct 2022AY 2011-12

Bench: Shri George George K. & Ms. Padmavathy S

For Appellant: Shri, K.R. Vasudevan, AdvocateFor Respondent: Shri Sankar K. Ganeshan, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 14ASection 36(1)(vii)Section 40Section 43B

deduction of tax at source. Satisfaction refers to situation where the element of uncertainty or doubt no longer exists. The expression employed in section 197(1) is ‘satisfied’. As per Shorter Oxford English Dictionary, the term ‘satisfaction’ means ‘sufficient information, proof or removal of doubt, conviction, provide with sufficient proof ... word ‘shall’ obligates or mandates an Assessing Officer to issue the certificate on being satisfied. The issue of a certificate under section 197(1) presupposes that the Assessing Officer is satisfied that the payments in question justify lower or nil deduction of tax at source. ………. 17. The aspect of “credit

M/S. United Breweries Limited, Bangalore vs. Additional Commissioner of Income Tax, Range- 12, Bangalore

In the result, both the appeals of the assessee are partly allowed

ITA 125/BANG/2020[2010-11]Status: DisposedITAT Bangalore20 Oct 2022AY 2010-11

Bench: Shri George George K. & Ms. Padmavathy S

For Appellant: Shri, K.R. Vasudevan, AdvocateFor Respondent: Shri Sankar K. Ganeshan, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 14ASection 36(1)(vii)Section 40Section 43B

deduction of tax at source. Satisfaction refers to situation where the element of uncertainty or doubt no longer exists. The expression employed in section 197(1) is ‘satisfied’. As per Shorter Oxford English Dictionary, the term ‘satisfaction’ means ‘sufficient information, proof or removal of doubt, conviction, provide with sufficient proof ... word ‘shall’ obligates or mandates an Assessing Officer to issue the certificate on being satisfied. The issue of a certificate under section 197(1) presupposes that the Assessing Officer is satisfied that the payments in question justify lower or nil deduction of tax at source. ………. 17. The aspect of “credit

Income Tax Officer, TDS-1, Mumabi vs. M/S Blue Star Realtors Pvt Ltd, Mumbai

In the result, both the appeals filed by the Revenue are In the result, both the appeals filed by the Revenue are In the result, both the appeals filed by the Revenue are dismissed

ITA 715/MUM/2022[2013-14]Status: DisposedITAT Mumbai13 Oct 2022AY 2013-14

Bench: Shri Amit Shukla () & Shri Om Prakash Kant () Assessment Year: 2013-14 & Assessment Year: 2014-15 Income Tax Officer, Tds-1, M/S Blue Star Realtors Pvt. Ltd., Gr. Floor, Qureshi Mansion, Ground Floor, Dewan Tower, Gokhale Road, Teen Hat Naka, Vs. Navghar, Vasai Road (W), Thane-400 602. Thane-401202. Pan No. Aaacb 8570 F Appellant Respondent Revenue By : Dr. Mahesh Akhade, Cit-Dr Assessee By : Mr. Abdul Memon, Ar Date Of Hearing : 08/09/2022 Date Of Pronouncement : 13/10/2022

For Appellant: Mr. Abdul Memon, ARFor Respondent: Dr. Mahesh Akhade, CIT-DR
Section 201Section 201(1)Section 271C

deduction certificate u/s 197(1) of the seeking for lower / nil deduction certificate u/s 197(1) of the Act. In the instant case, section 197(1) certificate has been Act. In the instant case, section 197(1) certificate has been Act. In the instant case, section 197(1) certificate ... should have been deducted. We hold tax at the rate of 20% should have been deducted. We hold that mere failure to obtain section 197(1) certificate by the that mere failure to obtain section 197(1) certificate by the that mere failure to obtain section 197(1) certificate

Income Tax Officer, TDS-1 Thane, Thane vs. M/S Blue Star Realtors Pvt Limited, Mumbai

In the result, both the appeals filed by the Revenue are In the result, both the appeals filed by the Revenue are In the result, both the appeals filed by the Revenue are dismissed

ITA 714/MUM/2022[2014-15]Status: DisposedITAT Mumbai13 Oct 2022AY 2014-15

Bench: Shri Amit Shukla () & Shri Om Prakash Kant () Assessment Year: 2013-14 & Assessment Year: 2014-15 Income Tax Officer, Tds-1, M/S Blue Star Realtors Pvt. Ltd., Gr. Floor, Qureshi Mansion, Ground Floor, Dewan Tower, Gokhale Road, Teen Hat Naka, Vs. Navghar, Vasai Road (W), Thane-400 602. Thane-401202. Pan No. Aaacb 8570 F Appellant Respondent Revenue By : Dr. Mahesh Akhade, Cit-Dr Assessee By : Mr. Abdul Memon, Ar Date Of Hearing : 08/09/2022 Date Of Pronouncement : 13/10/2022

For Appellant: Mr. Abdul Memon, ARFor Respondent: Dr. Mahesh Akhade, CIT-DR
Section 201Section 201(1)Section 271C

deduction certificate u/s 197(1) of the seeking for lower / nil deduction certificate u/s 197(1) of the Act. In the instant case, section 197(1) certificate has been Act. In the instant case, section 197(1) certificate has been Act. In the instant case, section 197(1) certificate ... should have been deducted. We hold tax at the rate of 20% should have been deducted. We hold that mere failure to obtain section 197(1) certificate by the that mere failure to obtain section 197(1) certificate by the that mere failure to obtain section 197(1) certificate

ITO, TDS, Ward- 1(1)(2), New Delhi vs. Bhartiya Urban Infrastructure and Land Development, New Delhi

In the result the appeal of the Revenue in ITA

ITA 5559/DEL/2017[2014-15]Status: DisposedITAT Delhi11 Oct 2021AY 2014-15

Bench: Shri N.K. Billaiya & Shri Amit Shukla[Assessment Year: 2014-15]

For Appellant: Shri Amit Goyal, AdvFor Respondent: Shri Gangadhar Panda, CIT- DR
Section 13(4)Section 133(6)Section 195(2)Section 197(1)Section 201Section 201(1)

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘D’ BENCH, NEW DELHI [THROUGH VIDEO CONFERENCE] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER

ACIT, New Delhi vs. M/S. Future First Services Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed and appeal of the assessee is partly allowed

ITA 3476/DEL/2017[2009-10]Status: DisposedITAT Delhi16 Jul 2021AY 2009-10

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Ajit Kumar Jain, CA & ShriFor Respondent: Shri Dheeraj Singh, Sr.D.R
Section 143(3)Section 197(1)Section 40A(2)(b)Section 40a

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-1” NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI

Future First Info. Servicees Pvt. Ltd, Gurgaon vs. DCIT, Circle- 9(2), New Delhi

In the result, the appeal of the Revenue is dismissed and appeal of the assessee is partly allowed

ITA 3838/DEL/2017[2009-10]Status: DisposedITAT Delhi10 May 2021AY 2009-10

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Ajit Kumar Jain, CA & ShriFor Respondent: Shri Dheeraj Singh, Sr.D.R
Section 143(3)Section 197(1)Section 40A(2)(b)Section 40a

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-1” NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI

Commissioner of Income Tax vs. Cargill Global Trading Pvt Ltd

ITA - 331 / 2011HC Delhi17 Feb 2011
Section 195Section 2Section 37(1)Section 40

Circular No.65 way back on 02.09.1971 clarifying the position in respect of income by way of interest under Section 194 read with Section 197(1) and (2) of the Act as under: "1 Where the supplier of goods makes over the usance bill/hundi to his bank which discounts the same

Commissioner of Income Tax Del vs. M/S Thai Airoways Internationa

In the result the appeal is allowed in ITA Nos

ITA - 51 / 2006HC Delhi13 Apr 2009

Section 194H the issue with respect to the effect of the certificates issued by the Assessing 2009:DHC:1339-DB Officer under Section 197(1) of the Act was not decided and hence in case this court was to hold otherwise, the appeal be remitted to the Tribunal for decision

Commissioner of Income Tax vs. Air France

In the result the appeal is allowed in ITA Nos

ITA - 964 / 2008HC Delhi13 Apr 2009

Section 194H the issue with respect to the effect of the certificates issued by the Assessing 2009:DHC:1338-DB Officer under Section 197(1) of the Act was not decided and hence in case this court was to hold otherwise, the appeal be remitted to the Tribunal for decision