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2013 (12) TMI 466 - AT - Income TaxWhether cash discount on payments made to the assessee in advance by agents for sale of SIM cards covered under section 194H – Held that:- Following CIT v Idea Cellular Ltd [2010 (2) TMI 24 - DELHI HIGH COURT] - Prepaid or post paid connections are provided to the subscribers through distributors called “Prepaid Market Associates (PMAs)” appointed by the assessee – The agreement with the assessee and prepaid distributors were that of Principal and Agent at all times and prepaid distributors were selling a prepaid SIM Card/recharge coupon – The amount of discount offered to prepaid distributor was in nature of commission and liable to tax deduction at source under Section 194H- It does not amount to 'sale' of goods as unsold SIM cards are to be returned to the assessee and it is required to make payment against them. This is an antithesis of 'sale' – Decided against assessee. Levy of interest u/s 201(1A) – The assessee has not provided the details of recipients and the particulars of payment of taxes by them - Held that:- Following Ramakrishna Vedantha Math v ITO [2012 (8) TMI 128 - ITAT, KOLKATA] - When the Assessee furnishes lawfully maintained information about the recipients, the AO should first ascertain the related facts about payment of taxes directly by the recipients – Following Hindustan Coca Cola beverages Ltd v CIT [2007 (8) TMI 12 - SUPREME COURT OF INDIA] – If the recipients have paid the tax on the amount of commission receivable by them, then the Assessee cannot be visited with liability u/s 201(1), but interest for non deduction of tax may be levied till the date of filing of return by the recipient – The issue was restored to the files of the AO for fresh decision.
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