SC rules bulk purchase discounts to stamp vendors are cash discounts, not commission, so no TDS under Section 194H applies

The SC held that the discount of 0.50% to 4% given to stamp vendors for bulk purchase is a cash discount and constitutes a sale transaction. Consequently, the payment does not attract TDS under Section 194H. The decision favored the assessee, affirming that commission or brokerage was not deductible as TDS in this context.

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The Supreme Court ruled that discounts given to stamp vendors are in the nature of cash discounts for bulk purchases, making the transaction a sale. Therefore, Section 194H of the Income Tax Act, 1961, does not apply. The civil appeal by the Department was dismissed with no costs.

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