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| The Tax Publishers2019 TaxPub(DT) 7967 (Hyd-Trib) INCOME TAX ACT, 19611
Section 194H
As apparent, assessee did not prove with books of account the nature of incentives. Also, AO without verification of facts gave finding with regard to nature of concerned incentives, which was not proper. Accordingly, matter was remanded back to AO with direction to verify books of accounts, relevant vouchers. In case incentive was in the nature of discount allowed on sales no TDS was called for under section 194H.
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Tax deduction at source - Under section 194H - Sales incentive given to stockists - Assessee pleading incentive to be in the nature of discount allowed on sales
Assessee company was engaged in production of asbestos cement sheets and exports, fittings of installation panels, etc. It claimed deduction of sales incentive given to stockists. AO treated incentives given to stockists as commission and accordingly disallowed deduction for want of TDS under section 194H. Assessee's case was that incentives were in the nature of discount and not commission.Held: As apparent, assessee did not prove with books of account the nature of incentives. Also, AO without verification of facts gave finding with regard to nature concerned incentives, and not commission which was not proper. Accordingly, matter was remanded back to AO with direction to verify books of account, relevant vouchers. In case incentive was in the nature of discount allowed on sales no TDS was called for under section 194H.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2009-10
INCOME TAX ACT, 1961
Section 37(1)
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