9911796707
TMI Blog2023 (4) TMI 533X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome of Rs.5,23,249/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-2(2), Nashik ('the Assessing Officer') vide order dated 24.02.2015 passed u/s 143(3) of the Income Tax Act, 1961 ('the Act') at a total income of Rs.19,52,419/- after making disallowance of commission expenditure of Rs.14,29,170/- for non-deduction of tax at source. The brief facts of the case are as under :- The Tax Auditor in his report had reported that the appellant had not deducted TDS on the commission expenditure of Rs.14,29,170/-. Based on this information, the Assessing Officer had called upon the appellant to explain as to why the provisions of section 40(a)(ia) of the Act should not be invoked in respect of com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uyers of the onions and he had not received the entire gross receipts. The appellant had debited commission expenditure to the Profit & Loss Account and the gross sale proceeds were credited to Profit & Loss Account, but the appellant had received only net of the commission expenditure. Thus, he submits that there is neither credit to the parties' account on account of commission expenditure nor actual payment by the appellant. Therefore, the question of deduction of TDS in terms of provisions of section 194H of the Act does not arise. In support of this proposition, he also placed reliance on the decision of the Hon'ble Bombay High Court in the case of CIT vs. Super Religare Laboratories Ltd., 133 taxmann.com 313 (Bombay). 6. On the other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mittedly, respondent has not been paying any money to the collection centres. Respondent was only receiving payment from the collection centres. As noted earlier, the collection centres collect money from the patient and pays a reduced amount to respondent and keeps the difference for itself as its margin. As the section is applicable only to a person 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 expla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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