Distributorship discount and TDS under Section 194-H resolved against revenue after binding Supreme Court ruling for the assessee.

Tax deduction at source was not attracted under Section 194-H on the discounted price given to distributors because the Supreme Court had already authoritatively held in the assessee's own case that such distributorship discount does not constitute commission or brokerage. That binding ruling covered the issue, so the controversy was answered in favour of the assessee and against the revenue without further adjudication on the admitted question of law.

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Issues: Whether tax was liable to be deducted at source under Section 194-H of the Income-tax Act, 1961 on the discounted price given to distributors.

Analysis: The issue stood covered by the Supreme Court decision in the assessee's own case, which upheld the view that Section 194-H was not attracted on the facts considered and answered the controversy in favour of the assessee. In view of that authoritative pronouncement, no further adjudication on the admitted question of law was necessary.

Conclusion: The question of law was answered in favour of the assessee and against the revenue; tax was not liable to be deducted at source under Section 194-H on the discounted price to distributors.

Ratio Decidendi: Where the Supreme Court has authoritatively held that the distributorship discount does not constitute commission or brokerage attracting Section 194-H, the same issue cannot be re-agitated and must be answered in favour of the assessee.

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