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2024 (5) TMI 1012 - ITAT DELHITDS u/s 194H and 194J - income/profit component in the payments received by the distributors/franchisees from the third parties/customers, or while selling/transferring the pre-paid coupons or starter-kits to the distributors - relationship between the appellant and its distributors - demand u/s 201(1)/201(1A) - HELD THAT:- As per ratio of judgment in Bharti Cellular Ltd. [2024 (3) TMI 41 - SUPREME COURT] it is well settled that assessee would not be under a legal obligation to deduct tax at source on the income/profit component in the payments received by the distributors/franchisees from the third parties/customers, or while selling/transferring the pre-paid coupons or starter-kits to the distributors. Section 194-H of the Act is not applicable to the facts and circumstances of this case. Thus in view of well settled principle of law impugned orders is unsustainable and liable to be set aside. Assessee appeal allowed.
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