TMI Blog2015 (11) TMI 1540X X X X Extracts X X X X X X X X Extracts X X X X ..... tors in Asst Year 2006-07 has been accepted by the Learned AO and not disputed. In these circumstances, we find no infirmity in the order of the Learned CIT-A in deleting the addition - Decided against revenue Applicability of provisions of section 194H read with section 40(a)(ia) - Held that:- We are in total agreement with the finding given by the Learned CITA that the subject mentioned payments made by the assessee are only discount paid to the purchasers of recharge coupons though wrongly categorized as commission on sales in the books of accounts. We also agree that the nomenclature in books of accounts would not be the determinative factor for understanding the real nature of the transaction and it is well settled that substance wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The first ground to be decided in this appeal is as to whether the Learned CITA is justified in deleting the addition made on account of bogus creditors of ₹ 70,234/- when no details were produced by the assessee before the Learned AO. 3.1. The brief facts of this issue is that the assessee deals in medicine on wholesale basis and is a proprietor of M/s N.Saha Agency and M/s N.Saha Co which were subjected to survey proceedings u/s 133A of the Act on 3.3.2009. The Learned AO observed that the closing balance of sundry creditors as on 31.3.2007 was ₹ 19,60,680/- and compared the same with that as on 31.3.2006 which was ₹ 18,90,446/- and for want of details brought the difference of ₹ 70,234/- ( 1960680-1890446) t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ults are accepted by the Learned AO based on revised return filed by the assessee, there is no scope for disputing the veracity of the trade creditors as admittedly the trade creditors had emanated only out of purchases made by the assessee. Moreover, we find that in any case, there is no scope for making any addition towards the discrepancies, if any, in the opening balance of sundry creditors in the assessment year under appeal. We find that the Learned CITA had given a finding that the sundry creditors in Asst Year 2006-07 has been accepted by the Learned AO and not disputed. In these circumstances, we find no infirmity in the order of the Learned CITA and accordingly, the ground no. 1 raised by the revenue is dismissed. 4. The next g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncipal to its agent and not principal to principal. He also gave a categorical finding that the subjectmentioned payments are only discount paid to purchasers of recharge coupons and the nomenclature in the books of accounts would not be the determining factor for framing an addition and accordingly deleted the addition of ₹ 9,57,884/-. Aggrieved, the revenue is in appeal before us on the following ground:- 2. On the facts and circumstances of the case the ld.CIT(A) is not justified by deleting the addition u/s. 40(a)(ia) for non-deduction of TDS on commission on sales by treating it as trade discount to customers completely ignoring the material brought on records by the AO during remand stage that the assessee himself termed it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n sales in the books of accounts. We also agree that the nomenclature in books of accounts would not be the determinative factor for understanding the real nature of the transaction and it is well settled that substance would always prevail over its form. We hold that in these facts and circumstances, the payments made by the assessee is in the category of principal to principal and the provisions of section 194H of the Act would come into play only when the payment is from principal to agent. Hence we find no infirmity in the order of the Learned CITA in this regard. Accordingly, the ground no. 2 raised by the revenue is dismissed. 5. In the result, the appeal of the revenue is dismissed. THIS ORDER IS PRONOUNCED IN OPEN COURT ON 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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