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2012 (9) TMI 366 - AT - Income TaxTDS on commission/fee paid to Consortium Members - Disallowance under Section 40{a)(ia) - Held that:- In this case the assessee entered into a consortium agreement with 12 other members who are travel agents for booking air tickets through the platform provided by M/s Amadeus Pvt. Ltd. - As is evident from the terms and conditions of the consortium agreement, the payment by the assessee to other consortium members is not voluntary .The assessee is under a legal obligation in terms of the agreement to pay the amount to other consortium members in accordance with settled terms. There is nothing to suggest that the assessee rendered any service to Amadeus. It is the settled legal position that income accrues when an enforceable debt is created in favour of an assessee. The terms of the consortium agreement do not reveal any such right in favour of the assessee, thus income of 52,22,326/-rightfully belonged to the other consortium members, to whom the amount was distributed by the assessee - Since the assessee only distributed the income in terms of the agreement and this did not amount to incurring of an expenditure no infirmity in the findings of the CIT(A) in deleting the disallowance u/s 40a(ia). As the notices issued by the ld. CIT(A) were never served upon it and the issues raised in ground nos. 2 & 5 in this appeal having not been adjudicated by him, it is fair and appropriate to vacate the findings of the CIT(A) and restore the matter to his file with the directions to readjudicate the issues in the light of aforesaid decision of the ITAT on identical facts in the AY 2006-07 after allowing sufficient opportunity to both the parties
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