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2017 (2) TMI 442 - AT - Income TaxTDS u/s 194H - addition u/s 40(a)(ia) on account of payment made by the assessee to the Hawkers - non deduction of tds - Held that:- Concerning the modus operandi of the assessee’ s business as well as the functions performed by the Hawkers, it is of the view that the amount in question paid by the assessee to the Hawkers is in the nature of discount and the same cannot be treated as commission merely on the basis of nomenclature used by the assessee in his books of account. For this conclusion, we derive support from the decision of in the case of Ahmedabad Stamp Vendors’ Association –vs.- Union of India [2002 (6) TMI 32 - GUJARAT High Court] wherein it was held that discount in the nature of cash discount on sale is outside the expression of “commission” or “brokerage” as envisaged in section 194H of the Act. The assessee therefore, was not required to deduct tax at source from the amount in question paid to the Hawkers and the question of disallowance under section 40(a)(ia) would not arise. - Decided in favour of assessee.
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