TMI Blog2021 (10) TMI 1114X X X X Extracts X X X X X X X X Extracts X X X X ..... erson who is responsible for paying to deduct tax at the time of credit to the account of the payee or at the time of payment and as respondent does not perform any act of paying, there is no obligation on the company to deduct tax at source. We fail to understand appellant s arguments as to how respondent was to deduct TDS when it was not making any payment. Mr. Suresh Kumar was unable to explain how respondent should have deducted TDS and paid with the treasury when respondent was not making any payment. Even the Assessing Officer, who the appellant wishes to support, does not say anything on this - AO s order is contrary to sense. In our view, ITAT (though has applied slightly different preposition while allowing the appeal) has not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices to customers through its own and through third party collection centres. Respondent allowed discounts to the collection centres other than its own centres. For example, collection centres would charge a patient ₹ 500/- for a particular blood test and hand over the sample drawn to respondent and respondent would charge the collection centre ₹ 400/-. The difference of ₹ 100/-, according to appellant, is commission to paid to collection centres and respondent had an obligation under Section 194H of the Income Tax Act, 1961 (the IT Act) to deduct TDS. According to appellant, as respondent failed to deduct such TDS, respondent was a defaulter and Assessing Officer passed an order under Section 201 (1) and 201 (1A) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year to the account of, or to, the payee, does not exceed [fifteen thousand rupees] : . (emphasis supplied) 5. Under Section 194H, the obligations is on any person who is responsible for paying any income by way of commission or brokerage to deduct tax at source at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier. In this case, admittedly, respondent has not been paying any money to the collection centres. Respondent was only receiving payment from the collection c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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