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TMI Blog2019 (12) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... and cross objection filed by the assesee were heard together and are disposed-off by this consolidated order. ITA No.3938/Mum/2018:- 2. The revenue has raised the following grounds of appeal. "1. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in deciding the issue under section 194J, whereas assessing officer has passed order considering commission payment under section 194H and deleted the default of Rs. 2,03,46,0127- u/s 201(1) and Rs. 73,24,564/-u/s.201(1A)?" 2. On the facts and in the circumstances of the case and in law the Ld, CIT(A) erred in holding that the assessee and treating it as principal to principal transaction without considering nature of business of such alleged stockiest, who i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een the assesee and CFA, the assesee has allowed 2% margin on total goods sold by the stockiest. During the course of TDS proceedings, the Ld. AO issued notice u/s 201(1) and 201(1A) of the Act, and called upon the assesee to explain as to why TDS shall not be computed, in respect of margin allowed to stockiest u/s 194H of the I.T. Act, 1961. In response, the assesee submitted that as per the arrangment between the parties, the assesee sales goods to stockiest on a principal to principal basis and not on principal to agent and accordingly, no tax is deductable at source on the sales made to the stockiest. The Ld. AO, after considering relevant submission of the assesee observed that the contention of the assesee appears to be largely correc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of year under consideration I have also gone through me appellate order passed by my predecessor on 06.06.2014 where the identical Issues were involved. I have also perused the copy of agreement. On perusal of the sample invoice raised by the appellant and the argument of the ArR. that invoices are inclusive of Excise Duty and Safes Tax as in case of normal sale of good Is found to be in order. The A.R. further stated that at the time of the sale title of good was also passed to the stockiest. therefore. this is a complete sale. The A.O. has not produced any evidence on record to snow that it was not a complete sale. The appellant is a pharmacy company manufacturing drugs which has to be stored in particular condition. Thus through ft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 201(1A) of the Act amounting to Rs. 73,24,564 on account of alleged non-deduction of tax at source on margins earned by the stockiest in Para 6 of the order, alleged interest under section 201(1A) of the Act amounting to Rs. 73,24,564 on the tax deductible at source on the margins earned by the stockiest has been computed as shown below: - Tax under section 201(1) Rate of Interest Number of Months Period Amount of interest 2,03,46,012 1% 36 1 April 2011 to 31 March 2014 73,24,564 Appellant's Submission: As submitted in the aforesaid paras, The Appellant was not in default for non-deduction of taxes on margins earned by stockiest ano1 accordingly, there was no question of levying interest under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stockiest has been examined by the Tribunal and after considering relevant facts, came to the conclusion that the transactions between the assesee and stockiest are in the nature of sale of goods, but not transactions in the nature of principal to agent. 7. We have heard both the parties, perused the material available on record and gone through orders of the authorities below. We find that the coordinate bench of ITAT, Mumbai 'C' bench has examined the issue of applicability of provision of section 194H and consequent TDS liability on the assesee on payments made to stockiest for the impugned AY under section 263 proceedings and after considering relevant facts came to the conclusion that the transactions between the assesee and stockiest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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