Dismissing the appeal of the revenue the Court held that, sale transaction trough dealers on principal -to -principal basis is not liable to deduct tax at source. Dealer could not be considered as commission agent of the assessee. Accordingly no disallowances can be made .(AY. 2009 -10)
CIT v. Gujarat Narmada Valley Fertilizer and Chemicals Ltd. (2019) 416 ITR 144/ 266 Taxman 19 (Mag)/ 311 CTR 556 / 184 DTR 84 (Guj)(HC)
S. 40(a)(ia): Amounts not deductible – Deduction at source – Sale transaction trough dealers on principal -to -principal basis –Dealer could not be considered as commission agent of the assessee- Not liable to deduct tax at source- No disallowances can be made . [ S.194H ]