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2013 (1) TMI 482 - AT - Income TaxNon-deduction of tax at source u/s 194H on “Commission” - default u/s 201(1) - assessee contested against that though he has accounted the discounts given under the head “Commission payments” in effect, they are only discounts offered by the assessee to its customers - Held that:- On consideration of definition of “Commission or brokerage” given in section 194, finding force in the contentions advanced by assessee as it can be said that the assessee herein has not appointed any sub-agents for canvassing clients for the assessee & these small time travel agents are providing any service to the assessee herein either by acting on its behalf or during the course of sale of flight tickets. On the contrary, they act on behalf of the travelling public or their respective customers. Thus, they provide service only to their customers by identifying the best available rates for the flight tickets ordered by their respective customers. Accordingly, the commission income ceded by the assessee herein in respect of the tickets purchased by the small time travel agents on behalf of their respective customers, would partake the character of “Discount” only & such discount payments will not be attracted by the provisions of sec. 194H. CIT(A) agreed with the contentions of the assessee and accordingly held that the decision rendered in the case of Vodafone Essar Cellular Ltd [2010 (8) TMI 691 - KERALA HIGH COURT] shall not apply to the payments made by the assessee to the small time agents as small time agents have not been appointed by the Airline companies. These small time agents have also not been appointed by the assessee herein also - in favour of assessee.
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