VODAFONE IDEA LTD. FORMERLY IDEA CELLULAR LTD.),INDORE vs. DCIT TDS, INDORE

ITA 968/IND/2019Status: DisposedITAT Indore25 May 2023Bench: SHRI VIJAY PAL RAO (Judicial Member), SHRI B.M. BIYANI (Accountant Member)8 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted divergent High Court judgments on whether discounts to distributors are commission. Since the AO and CIT(A) did not examine the specific terms of the distributor agreements and the assessee's accounting treatment, the matter was remanded for fresh adjudication.

What were the facts?

The assessee, a telecom company, provided discounts to its distributors for prepaid products. The AO held that these discounts were in the nature of commission and thus liable for TDS under Section 194H, treating the assessee as an assessee in default. The CIT(A) upheld the AO's order.

What were the issues?

Whether discounts allowed to distributors for prepaid products are in the nature of commission attracting TDS under Section 194H, and whether the AO and CIT(A) properly considered the evidence.

Which sections of the Income-tax Act were involved?

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

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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 19 appeal

The order continues below.

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