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| The Tax Publishers2019 TaxPub(DT) 5799 (Bom-HC) INCOME TAX ACT, 1961
Section 194H
When transaction was between two persons on principal-to-principal basis, deduction of tax at source as per section 194H, would not be made since payment was not for commission or brokerage. Therefore, appeal of Revenue was dismissed
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Tax deducted at source - under section 194H - Transaction between two persons on principal-to-principal basis -
Issue arose under consideration as to whether Tribunal was justified in deleting disallowance made by AO under section 40(a)(ia), without appreciating the fact that discount allowed by assessee to distributors in respect of starter packs and recharge coupons for its prepaid services amounted to payment by assessee of commission or brokerage within the meaning of section 194H as distributors were acting as agents of assessee Held: Tribunal, as noted, besides holding that CIT(A)'s order setting aside order passed under section 201 was not carried in appeal, had also independently examined the nature of transaction and come to conclusion that when transaction was between two persons on principal-to-principal basis, deduction of tax at source as per section 194H, would not be made since the payment was not for commission or brokerage.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 14A read with Rule 8D
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