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2023 (10) TMI 782 - HC - Income TaxTDS u/s 194H - amount retained by the agencies engaged in providing advertorials in the nature of commission or not - Addition u/s 40(a)(ia) - HELD THAT:- As relationship between the respondent/assessee and the agencies was found by the statutory authorities below to be on a principal-to-principal basis, the amount retained by the agencies it could only be construed as trade discount and not commission. Therefore, as rightly concluded by the Tribunal, there was no obligation on the part of the respondent/assessee to deduct TAS under Section 194H of the Act. Tribunal in this regard has noted the contents of the CBDT’s Circular No. 05/2016 dated 29.02.201 held relationship between the media company and the advertising agency is that of a principal to principal and therefore, not liable for TDS under section 194H. Decided in favour of assessee. Disallowance u/s 14A under Rule 8D(2)(iii) - HELD THAT:- AO, in our view, has wrongly taken into account the investments other than the investments made to earn exempt income. [See Cargo Motors (P.) Ltd. vs. Deputy Commissioner of Income-tax [2022 (10) TMI 571 - DELHI HIGH COURT].
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