TMI Blog2023 (8) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - HON&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in law in confirming the order of the CIT(A) cancelling the order passed under section 201(1) and 201(1A) of the Act by erroneously holding that the relationship between the assessee and the distributor is that of Principal to Principal and not that of Principal to Agent by relying on the decision of this Hon ble Court in case of Bharthi Airtel Ltd. (reported in 52 Taxman.com 31 (2014)) which has not reached finality.? 5. At the outset, Shri Suryanayaraya, submitted that question No. 1 relates to payment made by the assessee to M/s Manpower Agencies. This question does not arise for consideration in this appeal because the Revenue has not challenged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the CIT(A) [Commissioner of Income Tax Paras 6.6 6.7] and prayed for dismissal of these appeals. 8. We have carefully considered rival submissions and perused the records. 9. The transactions between the assessee and the distributor is not in dispute. It is also not in dispute that distributor is liable for making payment of full invoice value. The CIT(A) has recorded submissions made on behalf of the assessee that reduction in price by the distributor is to overcome unfavourable market changes and special occasions on which discount is given to the purchasers of computers and peripherals. It is relevant to note that decision to sell the products at lesser price than the invoice price is taken after the products reach the distributor a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of the amounts of such income credited or paid or likely to be credited or paid during the financial year to the account of, or to, the payee, does not exceed fifteen thousand rupees : Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed one crore rupees in case of business or fifty lakh rupees in case of profession during the financial year immediately preceding the financial year in which such commission or brokerage is credited or paid, shall be liable to deduct income-tax under this section: Provided also that no deduction shall be made under this section on any commission or brokerage payable by Bharat Sanchar Nigam Li ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
