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TMI Blog2022 (3) TMI 1292X X X X Extracts X X X X X X X X Extracts X X X X ..... ntions raised in the writ petitions form part of the said application, including what is noted hereinabove by us with regard to the attribution of profits to the PE, the same will be dealt with by the AO, as per law. At this stage, Mr Jolly says that the petitioners will move an application for the F.Y.2022-2023, within four weeks of receipt of a copy of this order. In case, such an application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioners under Section 197 of the Income Tax Act, 1961 [in short the Act ]. To be noted, the said application(s) relate to Financial Year (FY) 2021-2022. 1.1. The purpose with which the aforementioned application(s) were preferred by the petitioners for the FY 2021-2022, was that the payer should not withhold any money towards tax i.e., the withholding tax should be pegged at Nil rate. 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y have no PE in India. 2.2. Therefore, if the rate of attribution of profits to the PE in India is pegged at 26%, then the withholding rate of tax cannot exceed 1.04%. 2.3. It is, therefore, Mr Jolly s contention that the conclusion reached, via the impugned order, by the AO that the withholding rate of tax should be 4%, is completely unsustainable. It is Mr Jolly s contention that this aspe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be located in India, and connected to the petitioners, is 26%. If that figure is taken into account, then surely the withholding rate of tax cannot exceed 1.04% [26% x 10% x 40%]. 3.2. However, Mr Jolly says that since the FY is coming to an end, at this juncture, he does not wish to press the above-captioned writ petitions, but would file a fresh application before the AO for F.Y. 2022-2023. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thin four weeks of the receipt of the application. 6. Needless to add, the aforesaid observations will not impact the decision that the AO would take qua the fresh application. The AO will take a decision in the matter, after affording a hearing to the petitioners, in support of the application. 7. Parties will act, based on the digitally signed copy of this order. 8. The writ petition(s) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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