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

ITA 893/MUM/2022Status: DisposedITAT Mumbai21 November 2022AY 2012-1313 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the transactions between the assessee and stockists were on a principal-to-principal basis, and therefore, discounts, bonuses, and incentives offered did not fall under the ambit of Section 194H. Provisions for interest on delayed payments were also not considered interest under Section 194A.

What were the facts?

The Revenue appealed against the CIT(A)'s order which allowed the assessee's appeal regarding non-deduction of TDS on discounts and incentives provided to stockists. The Assessing Officer had treated the assessee as an assessee in default for not deducting TDS under Section 194H.

What were the issues?

Whether discounts, bonuses, and incentives offered to stockists are in the nature of commission requiring TDS under Section 194H. Whether provisions for interest on delayed payments are covered under Section 194A.

Which sections of the Income-tax Act were involved?

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

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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI PRASHANT MAHARISHI & SHRI SANDEEP SINGH KARHAIL

For Appellant: Shri Pranay Gandhi
For Respondent: Shri A.B. Koli

PER SANDEEP SINGH KARHAIL, J.M.

The present appeals have been filed by the Revenue challenging the separate impugned orders of even date 09/03/2022, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2011–12 and 2012–13. 2. Since both the appeals pertain to the same assessee and the issues involved are also common, therefore, as a matter of convenience, these appeals were heard together and are being disposed off by way of this M/s. Wockhard

The order continues below.

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