M/S BHARTI AIRTEL LIMITED,INDORE vs. DEPUTY COMMISSIONER OF INCOME TAX-TDS, INDORE

ITA 65/IND/2018Status: DisposedITAT Indore25 May 2023AY 2009-10Bench: SHRI VIJAY PAL RAO (Judicial Member), SHRI B.M. BIYANI (Accountant Member)10 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the AO and CIT(A) did not properly examine the agreements between the assessee and distributors or the accounting treatment of these transactions. These aspects are crucial for determining if the discount was commission. Therefore, the matter was remanded to the AO for fresh adjudication.

What were the facts?

The assessee, Bharti Airtel, allowed discounts to its distributors on the sale of prepaid products. The Assessing Officer (AO) treated this discount as commission and demanded TDS under Section 194H, holding the assessee in default. The Commissioner (Appeals) upheld the AO's order.

What were the issues?

Whether the discount allowed to distributors on prepaid products constitutes commission attracting TDS under Section 194H, and whether the AO and CIT(A) properly considered the relevant agreements and accounting entries.

Which sections of the Income-tax Act were involved?

Section 194H,Section 201(1),Section 201(1A),Section 154,Section 220(2)

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Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI VIJAY PAL RAO & SHRI B.M. BIYANI

For Appellant: Shri Sumit Nema, Sr. Adv. And Shri Gagan Tiwari, Adv
For Respondent: Shri P.K. Mishra, CIT-DR
Hearing: 16.05.2023Pronounced: 25.05.2023

Per Bench:

These two appeals by the assessee are directed against two separate orders of Ld. Commissioner of Income Tax (Appeals) (in short Ld. CIT(A)-II, Indore dated 31.03.2014 & 25.10.2017 arising from order passed u/s 201(1)/201(1A) & 154/201(1)/201(1A) for A.Ys. 2010-11 & 2009-10 respectively. For the A.Y. 2010-11 the assessee has raised following grounds of appeals:

ITA No.513/Ind/2014 & ITANo.65/Ind/2018 Bharti Airtel Ltd.. 1.The learned Income Tax Officer, TDS-II (AO) has erred both on facts and in law in applying the provisions of Section 194H of the Income Tax A

The order continues below.

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