Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 622 - MADHYA PRADESH HIGH COURTTDS u/s 194H - Non-deduction of TDS on payment made to M/s ACE Calderys Limited - ITAT held that the transaction is in the nature of principal to principal and not principal to agent basis - Held that:- Even though the Assessing Officer held M/s ACE Calderys Limited to be a broker of the assessee and liable for deduction under section 194-H, the appellate authorities found that the assessee company sells the branded product to M/s ACE Calderys Limited at mutually agreed price and the appellant’s liability in respect of the product sold ceases as soon as the products are dispatched from the premises of the appellant for delivery. It was found that the product order, dispatch instructions etc are given by M/s ACE Calderys Limited, and even particulars of the party to whom supply is made is given by M/s ACE Calderys Limited alongwith the quantity to be dispatched, the billing rate etc. Thereafter, in the invoice prepared for payment of Excise, M/s ACE Calderys Limited is shown as the consignee and the person to whom the purchase is made is shown as the purchaser of M/s ACE Calderys Limited. The appellant company raises commercial invoices in the name of M/s ACE Calderys Limited on mutually agreed prices. It was also found that documents required for Excise Act, Central Sales Act and General Sales Tax are issued to the appellant by M/s ACE Calderys Limited, who was responsible for making payment of commercial invoices raised by the appellant company and the responsibility of settlement of any dispute for loss etc was solely on M/s ACE Calderys Limited. - Decided against revenue
|