Section 197 of Income Tax Act, 1961—The petitioner has preferred the present writ petition to assail the order dated 31.05.2019, whereby the order under Section 197(1) has been passed raising the deduction of TDS from 1% – which was fixed for the earlier years, to 4%. The grievance of the petitioner is that the deduction of TDS has been raised arbitrarily without communicating any reasons to the petitioner and without granting any hearing to the petitioner.
The submission is that the petitioner continues to perform the same contracts as before for the same employer and there was no justification for change of the rate of deduction of TDS from 1% to 4%.

Held that—we dispose of this petition with a direction to the respondents to provide to the petitioner within one week the reasons recorded for issuance of the impugned certificate fixing the rate of deduction of TDS at 4%. It shall be open to the petitioner to assail the said reasons in case the petitioner is aggrieved thereby.[JIANGDONG FITTINGS EQUIPMENT CO LTD VERSUS DEPUTY COMMISSIONER OF INCOME TAX & ORS.][2019] 17 ITCD Online (34) [DELHI HIGH COURT]