Pr. Commissioner of Income-tax-8 v. Reliance Communications Infrastructure Ltd
[Citation -2019-LL-0722-40]
| Citation | 2019-LL-0722-40 |
|---|---|
| Appellant Name | Pr. Commissioner of Income-tax-8 |
| Respondent Name | Reliance Communications Infrastructure Ltd. |
| Court | HIGH COURT OF BOMBAY |
| Relevant Act | Income-tax |
| Date of Order | 22/07/2019 |
| Judgment | View Judgment |
| Keyword Tags | deduction of tax at source • brokerage and commission |
| Bot Summary: | 40a(i) of the Act, without appreciating the fact that the discount allowed by the assessee to the distributors in respect of starter packs and Page 1 of 3 ITA.603. 2017.doc recharge coupons for its prepaid services amounted to payment by the assessee of commission or brokerage within the meaning of Section 194H of the Act as the distributors are acting as agents of the assessee 2. The respondent assessee is a company registered under the Companies Act. The first question pertains to disallowance under section 40a(i) of the Income Tax Act, 1961 on the ground that according to the Assessing Officer, the assessee had deducted tax at source in terms of section 194H of the Act while making certain payments. The Tribunal in the impugned judgment allowed the assessee s appeal on two grounds. 2017.doc independently examined the nature of the transaction and come to the conclusion that when the transaction was between two persons on principal to principal basis, deduction of tax at source as per section 194H of the Act, would not be made since the payment was not for commission or brokerage. The Tribunal in the impugned judgement, came to the conclusion that the assessee had not earned any exempt income and there is no question of disallowance under section 14A that would arise. |