2025 (1) TMI 659 - SCH - Income Tax

Certificate for deduction at lower rate u/s 197 - India Netherlands DTAA read with the Protocol and MFN clause - as decided by HC 2021 (10) TMI 1212 - DELHI HIGH COURT a certificate u/s 197 of the Act will be issued in favour of the Petitioner, indicating therein, that the rate of tax, on dividend, as applicable qua the Petitioner is 5% under India-Netherlands DTAA - HELD THAT - The writ petition filed by the respondent was allowed by the High Court by relying upon a decision of Concentrix Services Netherlands B.V. 2021 (4) TMI 1051 - DELHI HIGH COURT and Nestle SA vs. Assessing Officer, Circle (International Taxation) 2021 (6) TMI 1158 - DELHI HIGH COURT . The relied upon judgments have been set aside by this Court in the case of Assessing Officer (International Taxation) vs. Nestle SA, 2023 (10) TMI 981 - SUPREME COURT . As this Court has held in favour of Revenue, the impugned order of HC is set aside and Writ Petition filed by the respondent stands dismissed. The appeal is accordingly allowed.

Summary

In the Supreme Court judgment, Justices Abhay S. Oka and Ujjal Bhuyan presided over the case. The petitioner was represented by Mr. N Venkatraman and others, while Mr. Anmol Anand and Mr. Ashish Sarda represented the respondent.

The Court granted leave and addressed the writ petition filed by the respondent, which had been allowed by the Delhi High Court. The High Court's decision relied on previous judgments in "Concentrix Services Netherlands B.V. vs. ITO (TDS)" and "Nestle SA vs. Assessing Officer, Circle (International Taxation)." However, these judgments were overturned by the Supreme Court in "Assessing Officer (International Taxation) vs. Nestle SA," [2023] 458 ITR 756 (SC), which ruled in favor of the Revenue.

As a result, the Supreme Court set aside the impugned order dated 25th October 2021, dismissing Writ Petition No.11921 of 2021 filed by the respondent. The appeal was allowed, and any pending applications were disposed of.