SANDEEP PERIWAL,KOLKATA vs. ITO, WARD-3(1), RANCHI

ITA 150/RAN/2025Status: DisposedITAT Ranchi30 June 202611 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the commission paid was 'referral commission' for bringing customers, not in relation to securities transactions. The genuineness of the payments was not substantiated, and the evidence indicated the amounts were adjusted to avoid tax liability for recipients.

What were the facts?

The assessee paid commission of Rs. 99,34,524/- to 27 individuals for their business. The assessee claimed that no TDS was deductible under Section 194H as the commission was paid in respect of 'securities' (mutual funds). The Assessing Officer disallowed the commission as bogus expenditure.

What were the issues?

Whether the commission paid was in respect of securities for TDS exemption under Section 194H, and whether the genuineness of the commission payments was established.

Which sections of the Income-tax Act were involved?

Section 194H,Section 40(a)(ia),Section 37

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “RANCHI BENCH, RANCHI

Before: SHRI GEORGE MATHAN & SHRI RATNESH NANDAN SAHAY

For Appellant: Shri M. K. Choudhary, Advocate
For Respondent: Shri Sandipan Khan, Sr. DR
Hearing: 30.06.2026Pronounced: 30.06.2026

Per Bench: This is an appeal filed by the assessee against the order of the NFAC, Delhi [hereinafter referred to as the ‘CIT(A)’] in appeal no. NFAC/2017-18/10036553 dated 17.03.2025 for the assessment year 2018-19. 2. Shri M. K. Choudhary, Advocate represented on behalf of the assessee and Shri Sandipan Khan, Sr. DR represented on behalf of the revenue.

3.

It was submitted by the ld. AR that the assessee is doing business of investment in mutual funds. The assessee had paid commission of Rs.99,34,524/- to 27 individuals. It was the submission that in view of the explanations to section 194H, no TDS was liable to be made. The ld. AR has filed written submission at pa

The order continues below.

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