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2015 (11) TMI 1133 - AT - Income TaxTDS u/s.194H - payment in the nature of "Commission" - difference between the MRP and the price that the franchisees pay to the Assessee - CIT(A) deleted the disallowance and held that the relationship between the Assessee and its franchisee was on a principal to principal basis and was not in the nature of relationship between principal and agent - Held that:- Passing of title in the goods is important and determinative of the question whether franchisee was acting as agent or acting on a principal to principal basis of the Assessee. It is an undisputed fact that as per the terms of the agreement between the Assessee and its franchisee property in goods was to pass on delivery and the risk of ownership (in the form of the franchisee not being to sell the product or damage to the product) was that of the franchisee. When that is the factual position in the case, we are of the view that the decision of the Hon'ble Delhi High Court in the case of CIT Vs. Mother dairy India [2012 (2) TMI 80 - DELHI HIGH COURT] was squarely applicable to the case of the Assessee. We therefore concur with the view of the CIT(A) and dismiss these appeals by the revenue. - Decided in favour of assessee.
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