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| The Tax Publishers2020 TaxPub(DT) 0077 (Visakhapatnam-Trib) INCOME TAX ACT, 1961
Section 263 Section 194H Section 40(a)(ia)
Assessee duly explained that incentive paid to the dealers was nothing but discounts allowed on sales and did not qualify as brokerage and commission, hence, there was no case for deduction of tax at source as required under section 194H. AO had verified this issue with regard to deduction of tax liability on the part of assessee and therefore, order passed by AO was neither erroneous nor prejudicial to the interest of revenue.
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Revision under section 263 - Erroneous and prejudicial order - AO having duly verified non-deduction of tax from incentive given to dealer and employees -
CIT held assessment order as erroneous and prejudicial to the itnerest of revenue on the ground that AO without conducting enquiry as regards TDS compliance in relation to incentives given to dealers and staff, allowed deduction to assessee.Held: Assessee duly explained that incentive paid to the dealers was nothing but discounts allowed on sales and did not qualify as brokerage and commission, hence, there was no case for deduction of tax at source as required under section 194H. AO had verified this issue with regard to deduction of tax liability on the part of assessee and therefore, order passed by AO was neither erroneous nor prejudicial to the interest of revenue.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, VISAKHAPATNAM BENCH
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