N C SHAW AND CO BEVERAGES PRIVATE LIMITED,KOLKATA vs. ADDL. COMMISSIONER OF INCOME TAX (TDS), RANGE-2, KOLKATA, KOLKATA

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ITA 1947/KOL/2024Status: DisposedITAT Kolkata27 December 2024AY 2015-16Bench: SRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER & SRI RAKESH MISHRA (Accountant Member)22 pages
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What did the Tribunal hold?

The Tribunal held that the trade discounts were not in the nature of commission or brokerage as there was no principal-agent relationship. Therefore, Section 194H was not applicable, and the assessee could not be treated as an assessee in default.

What were the facts?

The assessee, N C Shaw and Co Beverages Private Limited, was held as an 'assessee in default' for not deducting TDS on trade discounts given to distributors. The Assessing Officer and CIT(A) considered these discounts as commission liable for TDS under Section 194H.

What were the issues?

Whether post-sale trade discounts given to distributors constitute 'commission' or 'brokerage' requiring TDS under Section 194H, and consequently, whether penalty under Section 271C is leviable.

Which sections of the Income-tax Act were involved?

Section 194H,Section 201,Section 201(1A),Section 271C,Section 273B

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Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH, KOLKATA

Before: SRI PRADIP KUMAR CHOUBEY & SRI RAKESH MISHRA

आयकर अपीलीय अधिकरण कोलकाता 'ए' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH, KOLKATA श्री प्रदीप कुमार चौबे, न्याधयक सदस्य एवं श्री राकेश धमश्रा, लेखा सदस्य के समक्ष Before SRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER & SRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. No.: 1925/KOL/2024 Assessment Year: 2015-16 N C Shaw and Co Beverages Income Tax Officer, TDS Private Limited Vs. Circle-2(2), Kolkata (Appellant) (Respondent) PAN: AABCN8699N I.T.A. No.: 1947/KOL/2024 Assessment Year: 2015-16 N C Shaw and Co Beverages Addl. Commissioner of Private Limited Income Tax (TDS), Range-2, Vs. Kolkata (Appellant) (Respondent) PAN: AABCN8699N Appearances: Assessee represented by :Khirendra Mohan Gupta, AR & Vaarun Jain, AR. Department represented by : Pradip Kumar Biswas, Add. CIT. Date of concluding the hearing : November 12th, 2024 Date of pronouncing the order : December 27th, 2024 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER:

Page 2 of 22 2.2. Rival contentions were heard and the submissions made have been examined. We will first take up the appeal in ITA No. 1925/KOL/2024. I.

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