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TMI Blog2021 (12) TMI 830X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing questions of law are proposed in this appeal: 1. Whether the payment in the nature of commission made to directors of the assessee company is liable for tax deduction under Section 194H of the Income Tax Act, 1961 (the said Act) being in the nature of commission ? 2. Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT erred in holding that non-deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d but not deducted TDS under Section 194H of the said Act. The commission was paid to the CMD in the subsequent year, i.e., during the Assessment Year 2010-2011 after deducting TDS. According to Shri Sharma commission provision calls for disallowance under Section 40(a)(ia) in the impugned Assessment Year. 3. Before Commissioner of Income Tax (Appeals) (CIT (A)), respondent had contended t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(ia) of the said Act. 5. Shri Kapadia tendered copy of Form-16 of CMD which is taken on record and pointed out that Form-16 of the CMD for the Assessment Year 2010-2011 showed that commission was part of overall compensation/salary of the CMD and hence TDS in respect thereof is covered under Section 192 of the said Act. 6. Having considered the memo of appeal and the orders annexed there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order passed by CIT(A) or by ITAT in concurring with the findings of CIT (A). 8. Commissioner of Income tax, Delhi, Ajmer, Rajasthan and Madhya Bharat vs. Nagri Mills Co. Ltd. 33 ITR 681, this Court has observed as under: "We have often wondered why the Income-tax authorities, in a matter such as this where the deduction is obviously a permissible deduction under the Income-tax Act, raise dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g points of this character which do not affect the taxability of the assessee or the tax that the Department is likely to collect from him whether in one year or the other." 9. In our view, the Tribunal has not committed any perversity or applied incorrect principles to the given facts and when the facts and circumstances are properly analysed and correct test is applied to decide the issue at ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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