Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2020 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 701 - BOMBAY HIGH COURTTDS u/s 194H - discount given by the assessee to its distributors on prepaid SIM Cards - HELD THAT:- Tribunal noted the observations of the Assessing Officer that the discount allowed to the distributors by the Respondent – assessee company is on account of principal to principal relationship and not that of principal to agent. The Tribunal followed the decision of the Karnataka High Court in the case of Bharati Airtel Ltd. vs. DCIT [2014 (12) TMI 642 - KARNATAKA HIGH COURT] and held that the sale of SIM cards/recharge coupons at discounted rate to the distributors was not commission and therefore not liable to deduct the TDS under Section 194H. When the transaction was between two persons on principal to principal basis, deduction of tax at source as per section 194H of the Act, would not be made since the payment was not for commission or brokerage. See M/S. RELIANCE COMMUNICATIONS INFRASTRUCTURE LTD. [2019 (7) TMI 1371 - BOMBAY HIGH COURT] - Decided against assessee.
|