Held that\u00a0 the relationship between the assessee and its distributors with reference to sale of recharge vouchers and SIM cards was on principal-to-principal, not principal-and-agent, basis. Therefore, discount on sale of the products by a telecommunication company to its distributors did not amount to commission in terms of section 194H. Consequently, such discounts would not attract tax deduction at source in terms of section 194H and, as such, no default under section 201(1) could be attributed to the assessee. The order of the Commissioner (Appeals) was upheld. Tribunal also held that\u00a0 as the jurisdiction of the assessee fell under the jurisdiction of the Allahabad High Court, decisions of the High Courts of Kerala and Delhi\u00a0 would not bind the assessee.\u00a0\u00a0 (AY.2008-09, 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 194H : Deduction at source-Commission or brokerage-Telecommunications service provider-Sale of recharge voucher coupons and starter kits and discount to distributors-Principal too principal basis-Not liable to deduct tax at source-Precedent-Tribunal not bound by decisions of High Courts other than jurisdictional High Court. [S. 201(1), 201(IA)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-26299","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-6Qb","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/26299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=26299"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/26299\/revisions"}],"predecessor-version":[{"id":26915,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/26299\/revisions\/26915"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=26299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=26299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=26299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}