Certificate u/s 197 for deduction of TDS at a lower rate


27 May 2008

A company has heavy tds on its income every year, where tds far exceeds its tax liability, resulting in heavy refund. To avoid such blocking of funds in the refund(refund takes considerably long time to be issued), the company applied to A.O for a certificate under Section 197 for deduction at a lower rate for asst. Yr 2009-10, well ahead in the I week of April 2008. The A.O has not acted on it for the past nearly 2 months (presumably acting on the extant oral instruction of the jurisdictional CIT not to proceed on any such applications owing to its likely adverse impact on the revenue collection figures). The A.O is neither rejecting nor giving any order or reply in writing on the application.[Otherwise, the assessee has every justification to be issued this certificate] The matter is in a standstill state.

Whether any remedy is available under the Income Tax Act against such inaction of A.O? Whether this is a case that can be taken under I.T Ombudsman Scheme?

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