TMI Blog2013 (8) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008-2009, is directed against the order of the CIT(A)-XVI, Ahmedabad dated 20.5.2011. 2. The only ground of the appeal of the Revenue is as under: 1. The ld. CIT(A) erred in law and on facts in deleting the addition of ₹ 1,81,23,420/- made on account of disallowance u/s.40(a)(ia) for non-deduction of tax u/s.194H on sales incentives which was treated as commission as laid down in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We find that the assessee-firm is distributor of M/s. Sheela Foam Pvt. Ltd. ( SFPL for short) for the Gujarat State. The assessee has made payment of sales incentive to the dealers of SFPL . The only issue in this case is regarding the nature of payment of sales incentive paid to the dealers of SFPL whether in the nature of commission or brokerage, within the meaning of section 194H of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... target and percentage of incentive was given on the basis of their performance/achievement of the sale target given to them. The CIT(A) has reproduced the relevant table of incentive depending on the higher achievement of sales in his appellate order. We find that the nature of payment by the assessee to various dealers of SFPL is an incentive to achieve more sales only, and not in the nature o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the order of the CIT(A) in holding that the AO was not justified in treating the payment of incentives to the dealers as well as to another distributor, as payment of commission liable to TDS under section 194H of the Act, and that provision of section 194H are not at all applicable on the facts of the case, and in deleting the addition under section 40(a)(ia) of the Act. Accordingly, the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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