M/S BHARTI AIRTEL LIMITED,CHANDIGARH vs. ACIT (TDS), CHANDIGARH

ITA 216/CHANDI/2013Status: DisposedITAT Chandigarh30 May 2018AY 2007-0821 pages
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What did the Tribunal hold?

The Tribunal held that the incentives paid to distributors were not commission as the relationship was principal-to-principal and involved the sale of a right to service, not services. Regarding roaming charges, the issue was restored to the AO to determine if they qualified as fees for technical services under Section 194J, considering Supreme Court directions.

What were the facts?

The assessee, a telecom service provider, was found to have not deducted TDS on incentives paid to distributors for prepaid SIM cards and on roaming charges paid to other service providers. The Assessing Officer (AO) treated these as commission (Section 194H) and service charges (Section 194C) respectively.

What were the issues?

Whether incentives paid to distributors on prepaid SIM cards constitute commission under Section 194H, and whether roaming charges paid to other telecom operators are subject to TDS under Section 194C or 194J.

Which sections of the Income-tax Act were involved?

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

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Cases cited in this judgment(8)Show list

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Income Tax Appellate Tribunal, DIVISION BENCH ‘A’, CHANDIGARH

Before: SHRI SANJAY GARG & MS.ANNAPURNA GUPTA&

For Appellant: Shri Anil Bhalla
For Respondent: Shri Ram Mohan Singh, CIT DR
Hearing: 19.03.2018Pronounced: 30.05.2018

PER ANNAPURNA GUPTA, A.M.:

All the above appeals have been preferred by the same

assessee against the separate orders of Ld. Commissioner of Income Tax(Appeals), Chandigarh [hereinafter referred to as ‘CIT(Appeals)’] dated 1.1.2013, 26.12.2012 and 26.12.2012

relating to assessment years 2009-10, 2007-08 and 2010-11

respectively.

2.

It was common ground between both the parties that the issue involved in all the captioned appeals

The order continues below.

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