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2023 (8) TMI 456 - KARNATAKA HIGH COURTTDS u/s 194H - non-deduction of taxes on payments made to distributors towards price protection and special price clearance discounts - relationship between the assessee and the distributor is that of Principal to Principal OR Principal to Agent - HELD THAT:- CIT (A), in our opinion, has rightly recorded that distributors are required to place the purchase order as per clause 2.1 of the agreement and assessee reserves right to accept or reject any order. The inventory risk after acquiring the product is that of the distributor. Payment from the distributor to assessee has no link with the further sales made by the distributor. The commission or brokerage is described in explanation to Section 194H of the Income Tax Act, 1961 In view of the factual findings recorded by the CIT(A) that payment from the distributor to the assessee has no link with the further sale made by the distributor and same having been confirmed by the ITAT which is the last fact finding authority based on the decision of this Court in Bharti Airtel Ltd. Vs. DCIT [2014 (12) TMI 642 - KARNATAKA HIGH COURT] we find no merit in these appeals. Decided against revenue.
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