Meetu Kumari
Mar 18, 2026High Court Sets Aside Lower TDS Certificate of MakeMyTrip, Orders Fresh AO Review
The petitioner, MakeMyTrip India Private Limited, approached the Delhi High Court challenging an order and certificate issued under Section 197 of the Income Tax Act dated 17 July 2025 by the Deputy Commissioner of Income Tax (TDS), Gurugram for the financial year 2025–26. The company had applied for a lower TDS certificate, contending that the rate at which tax was being deducted did not reflect its actual tax liability. However, the Revenue issued the certificate at a rate which, according to the petitioner, was excessive and not properly justified. The core grievance of the petitioner was that while determining the withholding rate, the Assessing Officer had not adequately considered its financial position, past tax records, and relevant legal principles. It was argued that the order lacked proper reasoning and failed to address key aspects of the application, thereby resulting in an arbitrary determination of the TDS rate. This led the petitioner to seek judicial intervention for setting aside the certificate and directing a fresh consideration.Central Issue: Whether the Section 197 certificate fixing the TDS rate was legally sustainable or required fresh consideration by the Assessing Officer.
Accordingly, the Court remanded the matter back to the Assessing Officer with a direction to reconsider the application under Section 197 afresh and pass a clear, reasoned, and speaking order within two weeks. It was also clarified that the precedents relied upon by the Revenue on the principle of res judicata were not applicable in the present factual context, thereby reinforcing the need for an independent and proper determination.
