DCIT(TDS)-2(3), MUMBAI, MUMBAI vs. NOVARTIS HEALTHCARE PRIVATE LIMITED, MUMBAI

ITA 1907/MUM/2026Status: DisposedITAT Mumbai27 May 2026AY 2015-1616 pages
AI SummaryDismissed

What were the facts?

The assessee company was treated as an 'assessee in default' for not deducting TDS on trade margins of stockists, ESOPs, and interest on delayed payments to MSMEs. The Assessing Officer invoked Sections 194H, 192, and 194A respectively.

What did the Tribunal hold?

The Tribunal held that trade margins are not commission, ESOP taxation arises on exercise, and interest on delayed payments to MSMEs is not covered under Section 194A. Therefore, the assessee is not an 'assessee in default'.

What were the issues?

Whether TDS is applicable on trade margins treated as commission, on ESOPs at the time of grant, and on interest on delayed payments to MSMEs.

Which sections of the Income-tax Act were involved?

Section 194H,Section 192,Section 194A,Section 201(1),Section 201(1A),Section 17(2)(vi),Section 2(28A),Section 37(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH

Before: SHRI AMIT SHUKLA & SHRI PRABHASH SHANKAR

For Appellant: Ms. Preeti Datar &, Ms. Dhanshree Patil
For Respondent: Shri Ganesh Sudhakar Bare
Hearing: 11/05/2026Pronounced: 27/05/2026

Heard together (2 matters)

ITA No.1907/Mum/2026
CO No.139/Mum/2026

Read from the judgment's own cause title. This page is filed under one of them.

PER AMIT SHUKLA (J.M): The aforesaid appeals have been filed by the Revenue and the Cross Objections have been filed by the assessee against separate impugned orders passed by the learned Addl./JCIT(A), Mumbai, in proceedings arising under section 201(1)/201(1A) of the Income Tax Act, 1961 fo

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 194H

All 1,307 judgments and leading authorities on Section 194H →

Recent GST High Court judgments

Search GST case law →