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2022 (3) TMI 34 - AT - Income TaxTDS u/s 194H - commission payment to dealers - commission payment to dealers for distribution of SIM cards and recharge coupons of telecom service providers - whether there is principal and agent relationship between the assessee and dealers? - HELD THAT:- Admittedly, the very same issue has come up in the case of M/s. Cellular Mobile Telecom Services [2012 (12) TMI 294 - ITAT CHENNAI] as held that commission paid by the assessee to dealers for distribution of SIM cards and recharge coupons for telecom providers is liable for TDS u/s.194H of the Income Tax Act, 1961. We further noted that the Tribunal has considered agreement between the assessee and telecom provider and also nature of services rendered by the assessee to dealers by distribution of SIM cards and recharge coupons and also considered relevant facts and rightly held that discount offered by the assessee to dealers for distribution of SIM cards and recharge coupons is in the nature of commission which is liable for TDS u/s.194H CIT(A) after considering relevant facts and also by following decision of the ITAT., Chennai in the case of M/s.Cellular Mobile Telecom Services Vs. ITO (supra), has sustained additions made by the Assessing Officer towards disallowance of commission expenses u/s.40(a)(ia) of the Act, for non-deduction of TDS u/s.194H of the Income Tax Act,1961. Therefore, we are of the considered view that reasons given by the learned CIT(A) is in consonance with reasoning given by the ITAT., Chennai in the case of M/s.Cellular Mobile Telecom Services Vs. ITO (supra), and thus, we are inclined to uphold findings of the learned CIT(A) and reject arguments taken by the assessee. - Decided against assessee.
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