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2010 (9) TMI 536 - AT - Income TaxDisallowance for non deduction of TDS - Discount versus commission - The assessee is in the business of booking domestic and international airline tickets - The issue in this appeal is regarding the income of the intermediaries earned from the assessee in the process of booking tickets for third parties - The AO disallowed the deduction claimed by the assessee on account of discount given to the intermediaries u/s 40(a)(ia) for non-deduction of TDS - Department has submitted that the assessee is passing the commission income to the intermediaries and calling the same as discount but the nature of the charges paid to the intermediaries is of commission - When there is no contract of agency at any point of time between the assessee and the intermediaries and the discount made available to the intermediaries does not fall within the term commission or brokerage, then , such discount allowed by the assessee is not liable for deduction under section 194-H - Decided in favor of assessee
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