DCIT (TDS)(OSD) - 2(3), MUMBAI vs. M/S. WOCKHARDT LTD., MUMBAI

ITA 2131/MUM/2022Status: DisposedITAT Mumbai30 December 2022AY 2014-1521 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the incentives offered to stockists were in the nature of discounts on a principal-to-principal basis and not commission. It also held that the interest paid for delayed purchase payments was not in the nature of interest as defined under Section 2(28A) of the Act, but was linked to trading liabilities.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting the liability raised for non-deduction of TDS on incentives offered to stockists and on interest paid for delayed purchase payments. The assessee treated these as principal-to-principal transactions and payments not covered under Section 194H and Section 194A respectively.

What were the issues?

Whether incentives provided to stockists constitute commission requiring TDS under Section 194H, and whether interest paid for delayed purchase payments is taxable under Section 194A.

Which sections of the Income-tax Act were involved?

Section 194H,Section 194A,Section 2(28A),Section 201(1),Section 201(1A)

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Income Tax Appellate Tribunal, MUMBAI BENCH “G” MUMBAI

Before: SHRI ABY T VARKEY & SHRI OM PRAKASH KANT

For Appellant: Mr. Pranay Gandhi, AR
For Respondent: Mr. Byomakesh Pradipta Kumar, DR :
Hearing: 20/12/2022Pronounced: 30/12/2022

PER OM PRAKASH KANT, AM

The Revenue has preferred this appeal against order dated 27.06.2022 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre (NFAC), Delhi (in short ‘the Ld. CIT(A)’) for assessment year 2014-15, in relation to liability raised by the Deputy Commissioner of Income-tax (TDS)-2(3), Mumbai (in short ‘the Ld. Assessing Officer’) for non-deduction of M/s Wackardt Ltd. 2 tax at source on certain payments for assessment year 2014-15. tax at source on certain payments for assessment year 2014 tax at source on certain payments for assessment year 2014 The grounds raised by the Revenue are re

The order continues below.

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