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2013 (7) TMI 874 - AT - Income TaxAssessee in default - TDS u/s 194H - Whether the learned Commissioner of Income-tax (Appeals) was justified in holding that the relationship between the assessee-company and its distributor is that of "principal agency" relationship and consequently the discount paid to the distributors constitute "commission payment" exigible for deduction of tax at source under section 194H of the Income-tax Act, 1961 - Held that:- Commissioner of Income- tax (Appeals) has followed the binding decision of the hon'ble jurisdictional High Court in the case of Vodafone Essar Cellular Ltd. [2010 (8) TMI 691 - KERALA HIGH COURT] in deciding the issue against the assessee. - Calcutta High Court has also taken the view that the discount given to the distributors of "pre-paid cards" constitutes commission payment in the assessee's own case reported in Bharti Cellular Ltd. (Now Bharti Airtel Ltd) v. Asst. CIT [2011 (5) TMI 590 - CALCUTTA HIGH COURT]. The learned Commissioner of Income-tax (Appeals) has noticed that the hon'ble High Court of Delhi has also taken identical view on this issue in the case of Idea Cellular [2010 (2) TMI 24 - DELHI HIGH COURT]. - Decided against assessee.
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