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2015 (1) TMI 873 - HC - Income TaxApplication of Section 194J - sale of drugs - Principle to principle relationship - Held that:-The submission on behalf of the Revenue that this a mere device to evade the obligation to deduct tax at source is a mere conjecture as it is not supported by any evidence and/or facts on record. In the present case, the assessee has received the sale price at the rate fixed under the agreement. In such a case, where the assessee has received the amount of sale price, the question of the assessee deducting tax at source under Section 194J of the Act does not arise, because the assessee is not making any payment to the stockist. Therefore, whatever be the margin made available to the stockist, so long as the assessee is not making any payment to the stockist, the question of invoking Section 194J against the assessee does not arise. Once it is held that in the present case, Section 194J is not attracted, then, the question as to whether there was relationship of principal to principal or relationship of the manager becomes academic. - Decided in favour of assessee.
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