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2017 (1) TMI 1583 - AT - Income TaxTDS u/s. 194H - Discount allowed to pre-paid Distributors - sale of SIM cards/recharge coupons at discounted rate to distributors - assessee is a Cellular service provider and distributors were appointed who purchase the products in bulk and then sell the same to sub-dealers or retailers - Held that:- Respectfully following the decision of Bharti Airtel Ltd.[2014 (12) TMI 642 - KARNATAKA HIGH COURT] we hold that sale of SIM cards/recharge coupons at discounted rate to distributors is not commission and therefore not liable to TDS u/s.194H of the I.T. Act. As the Hon’ble High Court while holding so has remitted the matter back to the assessing authority only to find out how the books are maintained and how the sale price and the sale discount is treated and whether the sale discount is reflected in their books. If the accounts are not reflected as set out above section 194H is not attracted. Therefore, in line of the above observation of the Hon’ble High Court we restore the matter to the file of the Assessing Officer for necessary verification. Decided in favour of assessee for statistical purposes. 2
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