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2018 (10) TMI 289 - AT - Income TaxTDS u/s. 194G - non deduction of tds on commission paid to sub-agents - sale of lottery tickets through sub-agents - Held that:- The assessee is not giving any commission to the sub agents as there is a sale being effected between the assessee and the sub agents and the assessee after transferring the lottery tickets to the sub agents has no control over the same. It is not a case where the assessee is giving any remuneration or prize to the sub agents, in as much as the value of prize winning lottery tickets is claimed from the government agency supplying the lottery tickets to the assessee. The government agency after deduction of TDS credits the value to the account of the assessee who, thereafter, passes on the same to the sub agents. In the facts of the present case we find that the application of section 194G/194H of the Act was not warranted. While delivering the decision of the Tribunal, the Tribunal took note of the binding decision of the Jurisdictional High Court in the case of M.S. Hameed and Ors. Vs. Director of State Lotteries [2000 (11) TMI 63 - KERALA HIGH COURT] wherein it was held that the assessee is not liable to deduct TDS under section 194G, no disallowance under section 40(a)(ia) is called for. - Decided in favour of the assessee.
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