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2014 (5) TMI 482 - ALLAHABAD HIGH COURTValidity of assessment order passed u/s 147 despite stay order - notice u/s 148 of the Act – Disallowance u/s 40(a)(ia) of the Act – TDS not deducted u/s 194H - Trade discount provided by newspaper publishers to advertising agencies – Held that:- We have duly considered the explanation which has been tendered by the Assessing Officer in her affidavit. The Assessing Officer has stated that a copy of the order of stay passed by this Court was not produced before her and only a letter was placed as a result of which she proceeded to pass an order of re-assessment having regard to the bar of limitation which was to expire on 31 March 2014 but subject to the decision of the Supreme Court in the pending special leave petition and of this Court in these proceedings. We consider it appropriate to accept the explanation of the Assessing Officer and drop the notice to show cause which has been issued to her. Decision in case of Jagran Prakashan Limited Versus The Deputy Commissioner Of Income Tax (Tds) [2012 (5) TMI 488 - ALLAHABAD HIGH COURT]followed wherein it was held that, (i) there is no relationship of principal and agent between the petitioner and the advertising agencies; (ii) the advertising agencies do not render any service to the petitioner; (iii) 15% trade discount allowed by the petitioner to the advertising agencies is not a payment of commission within the meaning of section 194-H of the Income Tax Act; and (iv) the petitioner was not liable to deduct tax at source on the trade discount allowed to the advertising agencies and, hence, proceedings under section 201/201(1A) could not have been initiated against the petitioner. - Decided in favour of Asessee.
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