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2020 (1) TMI 48 - AT - Income TaxRevision u/s 263 - AO has not conducted enquiries on various issues in respect of incentives to its employees, trade incentives given to its dealers for which the assessee is liable to deduct the tax at source as per the provisions of section 194H - HELD THAT:- In the instant case the assessee has passed on the discounts given by the manufacturer to the distributors/ retailers. The department did not place any material to controvert the submissions of the assessee. Similarly the incentives were paid to the employees of the assessee which comes under the head salaries. As decided in own case [2018 (3) TMI 736 - ITAT VISAKHAPATNAM] since the incentives paid to dealers are covered by the decision of this Tribunal and the AO has verified this issue with regard to deduction of tax liability on the part of the deductor and decided the assessment proceedings. Hence the assessment order passed by the AO is neither erroneous nor prejudicial to the department. Similarly, the incentives paid to the employees take the character of salaries u/s 192 and no disallowance is warranted u/s 40(a)(ia) for the payment of salaries. Thus the order passed by the AO is neither erroneous nor prejudicial to the interest of the revenue. Therefore, we set aside the order of the Ld.Pr.CIT and restore the assessment order. - Decided in favour of assessee.
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