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2012 (2) TMI 80 - HC - Income TaxNon-deduction of tax at source - dairy business - milk sold to concessionaires – Revenue contending concessionaires to be agents and assessed difference between MRP of the product & purchase price to be commission – TDS u/s 194H - Held that:- In present case, concessionaire becomes the owner of the milk and the products on taking delivery of the same from the Dairy. He thus purchased the milk and the products from the Dairy and sold them at the MRP. The difference between the MRP and the price which he pays to the Dairy is his income from business. It cannot be categorized as commission. The Dairy may have fixed the MRP but ownership of products vests and is transferred to the concessionaires. The sale is subject to conditions, and stipulations. This by itself does not show and establish principal and agent relationship. The supervision and control required in case of agency is missing. It is irrelevant that the concessionaires were operating from the booths owned by the Dairy and were also using the equipment and furniture provided by the Dairy – Decided against the Revenue.
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