SFDC IRELAND LIMITED vs COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION 3 NEW DELHI & ANR.

Judgment text excerpt

$~68 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision : 14.01.2026 + W.P.(C) 16354/2025 CM APPL. 66967/2025 SFDC IRELAND LIMITED .....Petitioner Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Aniket D. Agrawal and Mr. Samarth Choudhari, Advs. versus COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION 3 NEW DELHI & ANR. .....Respondents Through: Mr. Sunil Aggarwal, SSC, Ms. Priya Sarkar, JSC and Mr. Anugram Dwivedi, Advs. CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE VINOD KUMAR JUDGMENT DINESH MEHTA, J. (ORAL) 1. The present petition preferred under Article 226 and 227 of the Constitution of India, calls in question an order dated 26.09.2025 passed and corresponding certificate dated 11.09.2025 issued by the Assistant/Deputy Commissioner of Income Tax, (International Taxation) Circle 3(1)(2) New Delhi (hereinafter referred to as ‘the competent officer’). Said certificate (dated 11.09.2025) concerns the petitioner as it mandates its reseller or payer-salesforce.com India Private Limited to deduct tax at the rate of 10% on the amount to be paid to the petitioner. W.P.(C) 16354/2025 Page 1 of 12 Signature Not Verified Signed By:PRAMOD KUMAR VATS Signing Date:20.01.2026 12:39:05 2. Mr. Ajay Vohra, learned Senior Counsel appearing on behalf of the petitioner, read the impugned order passed under Section 197 of the Income Tax, 1961 (hereinafter referred to as ‘the Act of 1961’) and submitted that the competent officer has proceeded with pre-occupied mind and was swayed by the revenue collection rather than objectively going into the essence of transaction and considering legal position. He added that such approach of the competent officer is apparent from the fact that in earlier part of his order he had asked the petitioner as to why his application shoul