The non resident company operating in international air traffic and enjoying treaty benefits having no taxable income sought a certificate of nil deduction in  19 ITR-OL 45 (Del). The tax officer however granted certificate at 1% rate stating that the projected receipts claimed by the assessee are estimated in nature and the assessee may have other sources of income also. The officer did not follow the mandate under rule 28AA and followed an arbitrary rate.
This practice of ad hoc rate certificate is quite common so that the taxpayers could invite reference to this decision upfront along with the application so that the officer do not venture into any ad hoc or arbitrary act.
Previous assessment orders and previous certificates issued are the most relevant considerations in the matter of grant if certificates the High Court noted in this case besides an all important exercise under rule 28AA.