Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (7) TMI 138 - ITAT DELHITDS u/s 194C - Booking of airline tickets - agents of agent - deduction of TDS on amount remitted to main agent after deducting the amount of commission - disallowance u/s 40(a)(i) CIT(A) allowed the claim - assessee company was carrying on the business of General Sales Agents (GSA) for international airlines and domestic airlines in India for passenger and cargo warehouse management - Held that:- The mode of functioning of assessee as explained is that he has appointed various agents all over the country and the agents deal with the assessee and not with the airlines. The accounting treatment followed by the assessee and the agent vis-à-vis the claim of TDS is that on a booking hypothetically of Rs.100/- by the agent deduction of its commission of Rs.5/- is made and TDS at 2.24% u/s 194C on the balance amount of Rs.95/- is made and the agent remits Rs.92.87 to the assessee. In view of the fact that the entire amount is remitted to the airlines, it is not reflected in assessee's P&L account and only the GSA commission earned and received from the airlines on the cargo sales is reflected in P&L account it has also been stated on behalf of the assessee that this method of accounting is being followed by the GSA and their agents in India without any exception. On a consideration of the same, since the findings arrived at has neither been rebutted on facts and no evidence has been led to show that either the modus operandi followed by the assessee was not followed by GSA and their agents in India or that on account of following this system some amounts not included in the total income stood adjusted with the TDS considered no good reason to interfere with the finding arrived at in the impugned order - Decided against the revenue.
|