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2019 (7) TMI 1371 - HC - Income TaxTDS u/s 194H - disallowance u/s 40a(ia) - Transaction between two persons on principal to principal basis - discount allowed by the assessee to the distributors in respect of starter packs and recharge coupons for its prepaid services - HELD THAT:- We do not find any error in the view of the Tribunal. The Tribunal, as noted, besides holding that the Commissioner’s order setting aside the order passed u/s 201 was not carried in appeal, had also independently examined the nature of the transaction and come to the conclusion that when the transaction was between two persons on principal to principal basis, deduction of tax at source as per section 194H, would not be made since the payment was not for commission or brokerage. Disallowance us 14A - HELD THAT:- Assessee had not earned any exempt income and there is, therefore, no question of disallowance under section 14A that would arise. The Tribunal had relied on the decision of the Delhi High Court in the case of Cheminvest Ltd. vs. CIT, [2015 (9) TMI 238 - DELHI HIGH COURT] . No error in the view of the Tribunal. The decision of the Delhi High Court in the case of Cheminvest (supra) has been followed by this Court on numerous occasions. In the result, no question of law arises. Income Tax Appeal is dismissed.
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