Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (8) TMI 941 - AT - Income TaxNon deducting TDS under section 194H - levy of penalty under section 201(1)/201(1A) - Whether a discount has the same nomenclature as that of commission, because, the Assessing Officer treated discount as commission - Held that:- Even in normal parlance, commission is passed on to the person, who solicits the business, whereas discount is a reduction on the sale price. Here, the assessee is offering discount to its customers, wherein, the customer pays less than the price quoted to him. The issue is squarely covered by the decision of the hon'ble Bombay High Court, in the case of CIT v. Qatar Airways [2009 (3) TMI 598 - BOMBAY HIGH COURT], wherein the hon'ble lordships were seized with identical issue and held that the provisions of section 194H are not attracted in the case of discount, being passed to the customer. - view taken by the Commissioner of Income-tax (Appeals) is correct, when he observes, "it is merely a discount to the customers on which TDS provisions are not attracted". We, therefore, sustain the view of the Commissioner of Income-tax (Appeals) and as a consequence, both grounds raised in the GOA are rejected. - Decided against Revenue.
|