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2019 (2) TMI 1966 - AT - Income TaxTDS on discount/commission made u/s 194H - sale of SIM Cards - Demand u/s. 201(1) & 201(1A) - Authorised Retailer deliver Prepaid SIM Cards / Scratch Vouchers / Recharge Vouchers / V-top up etc., to a prospective subscriber/customer only after collecting duly filled in Customer Application Form (CAF) along with copies of Proof of density (POI) and Proof of Address (POA) - case of the department is this that MRP (-) discounted price offered by the assessee to the distributor is payment of commission by the assessee to the distributor - whether once it is held that the right to service can be sold then the relationship between the assessee and the distributor would be that of "Principal and Principal" and not of "Principal and Agent"? - whether because of sub-clause (l) of Para 6.3 of the distributorship agreement, relationship between the assessee and the distributor can be termed as that of principal to agent? HELD THAT:- When the distributor / retailer can sale at a price below MRP as per his choice and market conditions, it cannot be said that the difference between MRP and discounted prices being charged by the assessee to the distributor is a payment of commission by the assessee to the distributor. This also does not change the relationship of the assessee and its distributors from that of Principal to Principal to that of Principal and agent. In the facts of present case as discussed above, we are of the considered opinion that relationship between the assessee and the distributor is that of principal to principal and not principal to agent. DR of revenue could not point out any difference in facts in the present case and in the case which is decided by Hon’ble Rajasthan High Cour [2018 (5) TMI 1394 - RAJASTHAN HIGH COURT]t and by the Bangalore Tribunal in assessee’s own case for earlier years [2015 (11) TMI 860 - ITAT BANGALORE] and the judgement of Hon'ble Karnataka High Court rendered in the case of Bharti Airtel Ltd. Vs. DCIT [2014 (12) TMI 642 - KARNATAKA HIGH COURT] - Decided in favour of assessee.
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