ZSCALER INC vs DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 3(1)(1), NEW DELHI

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment Reserved on: 17.10.2025 Judgment delivered on: 23.12.2025 Judgment uploaded on: As per Digital Signature~ + W.P.(C) 10556/2025 & CM APPL. 43739/2025 (stay) ZSCALER INC ..... PETITIONER versus DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 3(1)(1), NEW DELHI .... RESPONDENT Advocates who appeared in this case For the Petitioner : Mr. Kamal Sawhney, Mr. Arun Bhadauria and Mr. Puru Medhira, Advocates. For the Respondent : Mr. Sunil Agarwal, SSC, Mr. Viplav Acharya, JSC, Ms. Priya Sarkar, JSC with Mr. Anugrah Dwivedi and Mr. Utkarsh Tiwari, Advocates CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR JUDGMENT V. KAMESWAR RAO, J. 1. This petition has been filed seeking to set aside a certificate issued under Section 197 of the Income Tax Act, 1961 (the Act) dated 06.05.2025 along with an order dated 07.05.2025 read with continuation order dated 16.05.2025, dismissing the petitioner’s application for issuance of ‘Nil Signature Not Verified Signed By:PRADEEP WP(C) No.10556/2025 Page 1 of 35 SHARMA Signing Date:23.12.2025 16:09:48 Withholding Certificate’ for prospective payments amounting to Rs.13,19,12,77,703/-. 2. The petitioner is a company incorporated under the laws of the United State of America (USA) and a non-resident entity, in the business of providing software-based IT solutions and resells its software along with ancillary services to clients in (End-User)India. 3. The respondent is the Deputy Commissioner of Income Tax (DCIT) who has issued the certificate dated 06.05.2025 and passed the order dated 07.05.2025 read with continuation order dated 16.05.2025 under Section 197 of the Act. ISSUE INVOLVED: 4. The petitioner stated that it filed an application for ‘Nil Withholding Certificate’ before