Assessee company was primarily engaged in business of trading and manufacturing of mobile handsets, spare parts and accessories . It entered into an agreement for supply of Cellular Mobile Phones with distributor HCL. Relationship between assessee and HCL was that of principal to principal and not that of principal to agent .Discount which was offered to distributors was given for promotion of sales – Whether in absence of a principal-agent relationship, benefit extended to distributors could not be treated as commission liable for withholding tax under S. 194H . Further the  AO had not given any reasoning or finding to extent that there was payment for technical service liable for withholding under S.  194J, hence, merely making an addition under S.  194J without actual basis for same on part of AO was  not just and proper. Accordingly the addition was deleted .  (AY. 2010 -11 )