https://www.taxtmi.com/caselaws?id=392594 Whether discounts/debits to distributors amounted to commission liable to TDS under ss.194H/194J - Tribunal found contractual terms established a principal-to-principal relationship and discounts were sales promotion, not commission; no evidence of technical services for s.194J; addition under withholding provisions deleted (ground allowed). Whether Trade Price Protection (TPP) payments were deductible - TPP held a commercial expedient protecting distributors on unschemed handsets and incurred wholly and exclusively for business; deductible as revenue expenditure under s.37(1) (deduction allowed). Validity of 25% ad-hoc disallowance of obsolescence provision - AO gave no independent reasoning; matter remanded to AO for fresh decision in light of precedent and DRP direction (ground partly allowed). Marketing FOC handsets - treated as business expenditure (depreciation if capitalized); deduction allowed. Differences between sales returns and books - explanations unsupported; addition sustained. Claimed deductions under ss.10A/10AA on non-TP adjustments - not demonstrated and disallowed. Credit for prepaid taxes - AO directed to grant proper credit after hearing (ground partly allowed). en-us Thu, 20 Feb 2020 00:00:00 +0530 Fri, 16 Jan 2026 18:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=392594 Whether discounts/debits to distributors amounted to commission liable to TDS under ss.194H/194J - Tribunal found contractual terms established a principal-to-principal relationship and discounts were sales promotion, not commission; no evidence of technical services for s.194J; addition under withholding provisions deleted (ground allowed). Whether Trade Price Protection (TPP) payments were deductible - TPP held a commercial expedient protecting distributors on unschemed handsets and incurred wholly and exclusively for business; deductible as revenue expenditure under s.37(1) (deduction allowed). Validity of 25% ad-hoc disallowance of obsolescence provision - AO gave no independent reasoning; matter remanded to AO for fresh decision in light of precedent and DRP direction (ground partly allowed). Marketing FOC handsets - treated as business expenditure (depreciation if capitalized); deduction allowed. Differences between sales returns and books - explanations unsupported; addition sustained. Claimed deductions under ss.10A/10AA on non-TP adjustments - not demonstrated and disallowed. Credit for prepaid taxes - AO directed to grant proper credit after hearing (ground partly allowed). Case-Laws Income Tax Thu, 20 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=392594