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2015 (7) TMI 1292 - AT - Income TaxAddition u/s 40(a)(ia) - assessee has not paid the TDS and deposited to the govt. account before the due date of filing of return of income u/s. 139(1) - Held that:- As relying on COMMISSIONER OF INCOME TAX, KOL-XI, KOL VERSUS VIRGIN CREATIONS [2011 (11) TMI 348 - CALCUTTA HIGH COURT] the issue stands covered in favour of the assessee and against the revenue we direct the AO to allow the deduction of commission payments because the assessee has paid the TDS and deposited to the govt. account before the due date of filing of return of income u/s. 139(1) of the Act i.e. on 14.07.2009. Accordingly this issue of assessee's appeal is allowed. TDS u/s. 194H - non deduction of tds on commission payment - invoking the provision of section 40(a)(ia) - Held that:- According to the assessee, this is not commission but incentive on collection of money from different places by various persons as per the direction of the team employed by the assessee company. This incentive includes travelling allowance also. We find that this incentive is not given at a fixed rate for payments which is known in the trade as incentive for actual collection and this incentive is in the nature of discount and not commission. Once this is in the nature of discount or can be called as incentive but not commission then the assessee is not liable to deduct TDS on this and accordingly we direct the AO to delete the disallowance. - Decided in favour of assessee
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