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TMI Blog2014 (5) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... re was reimbursement of expenditure. It was explained that assessee firm was created with the objective of marketing the products of its principal company viz., M/s. Jagatjit Industries Ltd. (in short "JIL") and that it was in receipt of the following amounts from JIL : a. Commission based on volume of stock lifted by retailers from M/s. APBCL. b. Reimbursement of inter-depot expenses incurred by it. c. Reimbursement of any trade schemes implemented by JIL. 2.1. Assessee submitted that out of the above three, only item No.1 was its remuneration for its services, while the others were purely reimbursement of expenses. The assessee submitted that it received various claims from the retailers, depot wise and month wise, that such claims we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed-on to the retailers. Therefore, provisions of TDS do not apply. Further, it was contended that ITO has not satisfied the particular provision under which, TDS should have been deducted by it that provisions of section 40(a)(ia) were attracted only when assessee were shown to be liable to deduct tax. Assessee relied on the following cases before the Ld. CIT(A): i. United Hotels Ltd. vs. ITO 93 TTJ 882 (Del.) ii. ITO vs. Dr. Willmar Schwave India P. Ltd. 1 SOT 71 iii. JB Boda Surveyors P. Ltd. vs. ACIT (ITA.No.4252/Mum/2009) iv. DCIT vs. Lazard India P. Ltd. (2010) 41 SOT 72 (Mum.) v. DCIT vs. Choice Sanitaryware Industries (2011) 9 taxmann.com 120 (Rajkot). 5. On considering the submissions of the assessee and analyzing the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a sample. 8. We have perused the orders and documents placed on record. As per the agreement with M/s. Jagatjit Industries Ltd. dated 1st July, 2008 the assessee firm was appointed for the period effective from 1st July, 2008 to 31st March, 2009 for offering the services for the brands Aristocrat Premium Whisky and Aristocrat Finest Indian Whisky. The area of operation was Andhra Pradesh. There are 21 clauses in the agreement. Clause 13 is providing remuneration as per Annexure-I which indicate that assessee was to get Rs.2/- per case for Aristocrat Premium Whisky and Rs.5/- per case for Aristocrat Finest Indian Whisky. However, clause-14 states that expenses for inter-depot transfer and expenses incurred to fulfill the conditions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve. If the amounts are to be spent by the retail dealers, assessee has to submit separate debit notes duly supported by the individual vouchers of the retail dealers. In that case, the original expenditure being incurred by the retailers, assessee acts as an agent. However, assessee submitted the monthly debit notes (dated 22nd November, 2008 was submitted as a sample) as a consolidated bill raised on the main company. This debit note might be for direct expenditure incurred by the assessee as the company deducted taxes on which there is no dispute. Assessee also showed this as receipt in the P & L account. It is AOs contention that having paid the amounts to various retailers, assessee should have deducted tax on this amount, as the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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