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2016 (6) TMI 174 - AT - Income TaxTDS u/s 194H - discount given to the distributors towards starter kits and recharge vouchers - Held that:- As far as sale of starter kit / sim card is concerned, it is purely a purchase / sale transaction on principal–to–principal basis and there is no relationship of agency. That being the case, the provisions of section 194H are not applicable. Thus provisions of section 194H is not attracted on the discount given on sale of pre–paid starter kit. Thus we set aside the impugned order of the learned Commissioner (Appeals) and quash the demand raised by the Assessing Officer under sections 201(1) and 201(1A). See Bharti Airtel Ltd. & Ors v/s DCIT [2014 (12) TMI 642 - KARNATAKA HIGH COURT] - Decided in favour of assessee. TDS u/s 194J - payments made towards roaming service provided by other telecom service providers - Held that:- In the present case, undisputedly, the Assessing Officer has not obtained any report from the technical expert to ascertain the fact whether there is any human intervention in providing cellular services. It is patent and obvious that the Assessing Officer has relied upon the technical report obtained in case of Vodafone Essar Mobile Services Ltd. Roaming / inter connectivity services are rendered automatically without any human intervention. It is evident from the order passed under sections 201(1) and 201(1A), that the Assessing Officer relying upon the technical report obtained in case of Vodafone Essar [2015 (9) TMI 1358 - ITAT KOLKATA ]. Thus we hold that the roaming / inter–connectivity charges paid by the assessee to other telecom networks not being in the nature of fees for technical services will not attract the provisions of section 194J as there is no human intervention in providing the roaming services. That being the case, assessee was not required to deduct tax at source on payment of roaming charges in terms of section 194J. In view of the aforesaid, we quash the demand raised under sections 201(1) and 201(1A). - Decided in favour of assessee.
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