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2020 (11) TMI 906 - AT - Income TaxTDS u/s 194H - expenses incurred under the head Sales Promotion, Marketing development, promotional expenses and MR expenses - HELD THAT:- Under Explanation (iv) to Section 194H requires that where any income is credited to any account, whether called 'suspense account' or by any other name, in the books of account of the payer, such crediting shall be deemed to be credit of such income to the account of the payee for purposes of deduction of tax at source. The controversy arises in the given facts and circumstances whether the stakeholders are the payees as contemplated under Explanation (iv) to Section 194H - The answer stands in negative. Undisputedly, the payees in the present facts and circumstances are not the stakeholders but the other parties. There cannot be any question of deducting the TDS under the provisions of Section 194H Act in the present facts and circumstances. In holding so we draw support and guidance from the order of Mumbai tribunal in the case of Industrial Development Bank of India [2006 (7) TMI 248 - ITAT BOMBAY-H] which has been reproduced somewhere in the preceding paragraph. Thus, in view of the above detailed discussion and after considering the facts in totality, the grounds of appeal of the assessee are allowed whereas the grounds of appeal of the revenue are dismissed.
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