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2018 (9) TMI 802 - HC - Income TaxTDS u/s 194H - Disallowance u/s 40 [a](ia) - non deduction of tds on commission paid - Tribunal was of the opinion that there was no relationship of principal and agent between the assessee and the travel agents, to whom such commission was paid - Held that:- Before the Tribunal, assessee had pointed out that she was a member of International Air Transport Association as engaged in booking the air tickets for domestic and international air travels in various Airlines. Some of the travel agents booked air tickets by using the assessee’s membership. Such travel agents made payment of tickets at a concessional rate and these were the consumers of the assessee and not the agents. AO has committed an error in treating such travel agents as her agents and consequently, the discounted rate at which the tickets were sold was construed as commission paid by her to these agents. The travel agents were not working for her as agents. They had simply booked the tickets in their independent capacity through her. For making the bulk purchases for the airlines, she was getting sizeable commission and in turn, she had offered trade discount to the agents. The Tribunal accepted such explanation, referring to the judgment of this Court in the case of Ahmedabad Stamp Vendors’ Association v. Union of India [2002 (6) TMI 32 - GUJARAT HIGH COURT] in which the Court was of the opinion that the principal agent relationship was essential for applying Section 194 H of the Act. We are broadly in agreement with the view of the Tribunal. No question of law arises.
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