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2014 (3) TMI 59 - AT - Income TaxNon-compliance of provisions of section 194-H - payment to vehicle dealiers - payment of commission versus grant of discount or rebate - The conclusion of the Assessing Officer is that the assessee made payments to the intermediaries and impliedly the sub-agents of the assessee - Held hat:- the assessee was not getting any services from the vehicle dealer and there was no occasion to make any payment of commission to the vehicle dealers - if the assessee is sharing a part of commission received as remuneration from HDFC Bank in order to attract customers to improve volume of business, then the payment made by the assessee to the customers by issuing cheque in the name of vehicle dealers cannot be said to be a payment of commission. The Assessing Officer made additions on hyper technical grounds which was rightly deleted by the Commissioner of Income Tax(A) after considering the additional evidence, the remand report and explanation of the assessee - there was no occasion for the assessee to make payment of commission to the vehicle dealers who are getting business by the assessee – thus, the payment made by the assessee in the form of cheques through vehicle dealers to the customers is a grant of rebate and discount - the assessee was not under any obligation to comply with the provisions of section 194H of the Act - the Assessing Officer wrongly invoked the provisions of section 40(a)(ia) of the Act – Decided against Revenue.
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