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2021 (6) TMI 354 - ITAT AHMEDABADTDS u/s 194H - payment made by the appellant to the prepaid distributors is in nature of commission - assessee in default - HELD THAT:- Deduction of TDS on prepaid SIM cards and Recharge cards, different High Courts’ have taken contrary view by holding that while the service cannot be sold, right to service can always be sold. And Hon’ble Karnataka High Court did not agree with the judgment of Hon’ble Delhi High court wherein it is held that cellular companies are liable to deduct TDS on the commission paid to Franchise for selling of SIM cards and Recharge cards. The Hon’ble Delhi High Court and the Rajasthan High Court have given contrary findings with regard to applicability of Section 194H in case of the appellant for the same transaction in the case of the appellant. On similar transactions of other telecom operators, the Calcutta and Kerala High Courts have upheld applicability of section 194H. The Hon’ble Supreme Court in the case of Synco Industries Ltd. [2008 (3) TMI 13 - SUPREME COURT] upheld the view taken by majority of the High Courts even though such view was against the assessee. As relying on M/S. VODAFONE WEST LTD., (FORMERLY KNOWN AS VODAFONE ESSAR GUJARAT LTD. [2018 (4) TMI 333 - ITAT AHMEDABAD] is not liable to deduct tax u/s.194H and 194J. Therefore, assessee is not in default for such TDS. On the principle of consistency and respectfully following the order of co-ordinate bench and in our considered opinion ld. CIT(A) has passed a detailed and reasoned order. - Decided in favour of assessee.
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