TMI Blog2021 (11) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... tfall in its amount of tax deducted at source - Hence, we do not find any infirmity in the order of the Ld. CIT(A) to interfere with the same. Accordingly, uphold the findings of the Ld. CIT(A) and dismiss this ground of appeal of the revenue. - ITA No. 268/CHD/2020 - - - Dated:- 20-10-2021 - N.K. Saini, Vice President And R.L. Negi, Member (J) For the Appellant : Meenakshi Vohra, Addl. CIT For the Respondents : Satish Kumar Goel, Advocate ORDER Per R.L. Negi, Judicial Member The Revenue has filed the present appeal against the order dated 26.02.2020 passed by Commissioner of Income Tax (Appeals), Karnal [for short 'the CIT(A)'], whereby the Ld. CIT(A) has partly allowed the appeal filed by the assessee against the order passed by the AO u/s. 201(1) (1A) of the Income Tax Act, 1961 [for short 'the Act'] for the assessment year 2017-18. 2. Brief facts of the case are that TDS survey u/s. 133A(1) of the Act was conducted at the business premises of the assessee company on 19.10.2017. Perusal of relevant documents during the course of survey proceedings and the post survey enquiry revealed that the assessee had not deducted tax at source on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts of the case. 4. Whether on facts and circumstances of the case the Ld. CIT(A] was correct in holding that the judgment of Hon'ble High Court in case of Pr. Commissioner of Income Tax-8 Vs Reliance Communication on 22 July 2019 (Bombay High Court) is applicable to the facts of the case. 4. Since there is a delay of 37 days in filing the present appeal, the appellant/revenue had filed an application for condonation of delay stating that due to countrywide lockdown in the wake of COVID-19 pandemic w.e.f. 25.03.2020, the process for filing appeal could not be completed, therefore, the present appeal could not be filed within limitation period. During the course of arguments, the Ld. DR submitted before us that the revenue could not file the appeal within the limitation period due to the circumstances beyond its control. The Ld. DR further invited our attention to the provisions of the Taxation and other Laws (Relaxation of Certain Provisions) Bill, 2020 and submitted that vide the said Bill the government of India extended the due dates for filing appeals, reply or any report etc. falling during the period 20.03.2020 to 31.12.2020 to 31.03.2021. In view of the afor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , valuable article or things, not being securities. The Ld. counsel placing reliance on the judgment of the Hon'ble Rajasthan High Court in the case of Hindustan Coca Cola Beverages (P.) Ltd. Vs. Commissioner of Income-tax-III, Jaipur [2017] 87 taxmann.com 295, judgment of the Hon'ble Bombay High Court in the case of Pr. Commissioner of Income Tax-8 vs Reliance Communications in ITA No. 603 of 2017 order of the Chandigarh Bench of the ITAT in the case of Vodafone Idea Ltd. Vs. Assistant Commissioner of Income-tax(TDS), Chandigarh [2019] 109 taxmann.com 466 (Chandigarh - Trib.) and the decision of the Jaipur Bench of the ITAT in the case of Bharti Hexacom Ltd. Vs. Income tax Officer (TDS)-II, Jaipur [2016] 68 taxmann.com.388 (Jaipur Trib., submitted that since the findings of the Ld. CIT(A) are in accordance with the judgments of the Hon'ble High Courts and the decisions of the various Benches of the Tribunal, there is no infirmity in the said order to interfere with. 8. We have heard the rival submissions of the parties and perused the material on record including the cases relied upon by the parties. The Ld. CIT(A) has decided this issue in favour of the assessee ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the past history in appellant's case, such a proposition was never raised and as per the assessee, rightly so as the provisions of Section 194H were applicable on the rightful incentives of the buyers as per the sale policy. In view of the facts and circumstances in the appellant's case, no relevance existed in the citations of Indian Contract Act when read with Section 194H read with Explanation 1. The reliance on judgments including that of the Delhi High Court squarely applies in favour of appellant wherein it was held that:- The quantum of incentives earned by a dealer may be dependent on the quantum of certain sales, but the normal buying and selling goes on irrespective of the schemes and, hence, these incentives cannot be termed as commission in the normal course of buying and selling the goods as envisaged in Section 194H of the Act The appellant also relied upon the following judgments of ITAT Chandigarh Bench and High Courts: i) Vodafone Idea Ltd. Vs. Assistant Commissioner of Income-tax (TDS), Chandigarh [2019] 109 taxmann.com 466 (Chandigarh - Trib.) ii) Hindustan Coca Cola Beverages (P.) Ltd. Vs. Commissioner of Income-tax-III, Jaipur [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act are applicable in the assessee's case. Accordingly, the Ld. DR submitted that the findings of the Ld. CIT(A) may be set aside. 11. On the other hand, the Ld. counsel supporting the order passed by the Ld. CIT(A) submitted that since the findings of the ld. CIT(A) are in accordance with the provisions of law therefore, there is no merit in this ground of appeal of the revenue. The Ld. counsel further pointed out that as per the clarificatory question/answer in Circular No. 715 dated 08/08/1995, the advertising contract shall fall u/s. 194C and advertising agencies shall have to deduct Tax at source u/s. 194J of the Act, while making payments to their artists, models etc. 12. We have gone through the available material on the record in the light of the rival submissions of the parties. During the previous year the assessee paid ₹ 99,18,191/- to three parties on which the assessee deducted Tax @ 2% under section 194C of the Act. The Ld. counsel placing reliance on the judgment of the Hon'ble Supreme Court in the case of Hindustan Coco Cola Beverage (P) Ltd. vs. CIT 163 Taxman 355(SC) submitted that as per the ratio laid down in the said case, where the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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