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2016 (9) TMI 1609 - AT - Income TaxTDS u/s 194H OR 194J - discounts given to collection centres - defaulter u/s. 201(1) and 201(1A) for non deduction of TDS - Short deduction of TDS - whether relationship between the assessee and collection centres is in the nature of principal to principal and not that of principal to agent? - HELD THAT:-We find that an identical issue has been decided in assessee’s own case which is reported as SRL Ranbaxy Ltd. [2011 (12) TMI 84 - ITAT DELHI] for Assessment Year 2006-07 wherein it was held that the discounts allowed by the assessee Laboratory to the collection centres is not commission and not attracted by the provisions of Sec. 194H for the reason that there is no principal agent relationship between the assessee and the collection centre and the relationship between assessee and collection centres is only principal to principal relationship therefore the provisions of Sec. 194H have no application There was no transfer of title in the property (SIM cards) by the assessee to the distributor, it was held that the distributor acted as an agent of the assessee and the relationship between the parties was not on a principal to principal basis. It is in these circumstances that in BHARTI CELLULAR LTD. [2006 (4) TMI 50 - ITAT, KOLKATA] held the provisions of sec. 194H of the Act to be applicable to the amount which was regarded as being in the nature of commission. The present case, on the other hand, is not one of sale of goods, but one of rendering of services. The assessee renders diagnostics services to the collections centers against payment, on which necessary tax is deducted at source u/s 194 J of the Act. There is no element of agency between the assessee and the collection centers. ‘Bharti Cellular’ (supra), therefore, has no application whatsoever to the facts of the present case”. Since facts and circumstances being identical, respectfully following the said decision, we hold that the provisions of Sec. 194H have no application for the discounts allowed by the assessee to the collection centres. Thus, we sustain the order of the Ld. CIT(A). - Decided against revenue.
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