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2012 (7) TMI 458 - AT - Income TaxCommission versus Rent - Whether TDS was required to be deducted in terms of provisions of sec. 194H or 194 I of the Act - AO invoked provisions of sec. 194I of the Act on the ground that agreements were for rent payments and not commission – Held that:- Specific clause in agreements that the exclusive possession will be with the franchisee and not the assessee - when the assessee is not only not in physical possession and there being no fixed rent payable while the francisee have to receive commission on the basis of turnover or on mutually agreed terms, it is evident that the aforesaid two agreements are truly of franchise and can, by no stretch of imagination, be treated as a tenancy in favour of the assessee - assessee rightly deducted TDS in terms of provisions of sec. 194H of the Act in respect of payments. Provisions of sec. 40(a)(ia) of the Act – Held that:- Assessee deducted and paid tax in accordance with the provisions of sec. 194H of the Act in relation to payments - there is no violation of provisions of sec. 40a(ia) of the Act - even in the event of any shortfall in deduction of tax at source, provisions of sec. 40a(ia) are not attracted
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