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TMI Blog2018 (12) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 71,82,352/-. The case was selected for scrutiny and order u/s 143(3) was passed on 31/10/2011 determining the assessed income at Rs. 82,74,231/-. The CIT-1, Hyderabad, powers vested u/s 263, set aside the assessment order vide his order dated 18/03/2014 stating that on verification of the assessment records, it was seen that the AO had failed to examine the following issues and completed the assessment: 1. Relevance of provisions of section 194H of the Act, on the amount of Rs. 1,51,55,998/- debited in the P&L A/c towards sales discount and commission under the head 'selling and distribution' expenses. ii. Requirement of disallowance of expenditure of Rs. 49,722/- debited to the P&L A/c towards interest on TDS. iii. Requiremen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e addition of Rs. 3,02,361/- (out of Rs. 6,45,331) made by the assessing officer u/s 2(24)(x) r.w.s.36(1)(va) on account of belated payments of employees contribution to PF & ESI. (v) The Ld. CIT(A) ought to have appreciated that the provisions of sec.43B are not applicable in case of employees' contribution to ESI & PF and the assessee would get deduction only if the payments are made before the due date as prescribed under the PF/ESI Act / rules or notification governing such funds. (vi) The Ld.CIT(A), while allowing the claim of the assessee in case of belated employees contribution over looked the clarification issued by the CBDT vide Circluar No 22/2015 dtd: 17-12-2015 that the provisions of sec 43B are attracted only in case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ription for the newspaper and the employees are rewarded by way of an incentive for the same in addition to their salary. It was submitted that the payments were not at all a commission as defined u/s.194H, but it was sales incentives paid to the employees of the company, paid in the form of commission coming under the purview of Section 17 of the IT Act. Relying on various case law, the assessee submitted that the commission and discounts do not come under the purview of the commission u/s 194H by any stretch of imagination and they are all sales incentives paid to employees and hence, TDS provisions will not apply to such sales incentives u/s 194H of the Act. 7. Since the evidence submitted before the CIT(A) was not submitted before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orical finding that the incentives paid to the employees are not subjected to TDS u/s.194H and there is no question of change of nomenclature and the incentives given to the employees by the assessee are found to be correct, hence the same is allowed. It is brought to our notice the detailed statement on incentive distribution among its employees. The total payment including salaries are below the threshold limits. Ld. CIT(A) has called for remand report from AO and AO has not disputed the actual expenditure but expressed his views that the assessee has changed the nomenclature of the expenses to incentives. After considering the relevant papers submitted before him and remand report, ld. CIT(A) has allowed the assessee's appeal. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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