ITAT allowed the taxpayer's appeal, rejecting the AO's...

ITAT allowed the taxpayer's appeal, rejecting the AO's disallowance of commission and sales incentives. The tribunal found no principal-agent relationship exists between the company and retailers, rendering TDS provisions under section 194H inapplicable. The tribunal emphasized that the AO erroneously questioned the expenditure's genuineness based on outdated inquiries conducted years after the relevant financial year. The tribunal concluded that the taxpayer provided sufficient documentary evidence, including party confirmations, to substantiate the expenditure's authenticity. Consequently, the tribunal overturned the AO's disallowance and held that the expenditure was legitimate and not a tax avoidance mechanism.