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2020 (1) TMI 601 - AT - Income TaxTDS u/s 194H - discount allowed by the Appellant to the Prepaid Distributors - No deduction of tds - "assessee in default" u/s.201 - relationship between the Appellant and the Prepaid Distributor is of Principal to Principal ("P2P") and not Principal to Agent ("P2A") - HELD THAT:- In the case of Vodafone Essar Gujarat Ltd vs ACIT, TDS Circle, Ahmedabad [2015 (7) TMI 474 - ITAT AHMEDABAD] has considered an almost identical issue and decided the issue in favour of the assessee as held The deduction of income tax at source being a vicarious responsibility, when there is no primary responsibility, the assessee has no obligation to deduct TDS - the right to service can be sold then the relationship between the assessee and the distributor would be that of principal and principal and not principal and agent – thus, the order passed by the authorities holding that Section 194H of the Act is attracted to the facts of the case is unsustainable. - The matter is remitted back to the assessing authority only to find out how the books are maintained and how the sale price and the sale discount is treated and whether the sale discount is reflected in their books - If the accounts are not reflected Section 194H of the Act is not attracted. - Decided in favour of assessee.
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