2015 (1) TMI 873

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....p;        "a) Whether, on the facts and circumstances of the case as brought out by the AO and CIT (A) in their orders and in law, the Tribunal was right in holding that the relationship between the assessee and the super stockist is of the nature of principle to principle relationship and not that of appointment of manager by the assessee ?           b) Whether, on the facts and circumstances of the case as brought out by the AO and CIT (A) in their orders and in law, the Tribunal was right in holding that no payment on account of professional or technical services was made by the assessee to its super stockist, whereas margins made available by the assessee....

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....ces rendered by M/s.Zivon to the respondent - assessee was managerial in nature. Therefore, he concluded that the respondent - assessee was liable to deduct tax under the provisions of Section 194J of the Income Tax Act, 1961 ('the Act'). 4. On appeal, the Commissioner of Income Tax (A) by five identical orders dated 12th October 2011 (separate for each assessment year) partly allowed the appeal. The Commissioner of Income Tax (A) held that Section 194J of the Act was applicable in respect of the payments received by the respondent - assessee from M/s.Zivon as the services rendered by M/s.Zivon was in the nature of managerial services and would be covered by fees for technical services. 5. On further appeal, the Tribunal by it....

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....gement of selling goods between the respondent - assessee and M/s.Zivon was a device to get over the liability to pay TDS on the part of the respondent - assessee. According to Mr.Malhotra taking the illustration given by the Tribunal, the drugs are passed on for consideration of Rs. 80/to the retailer by M/s.Zivon as manager / agent of the respondent - assessee. The commission / remuneration payable to M/s.Zivon would be Rs. 10/by the respondent - assessee for its services. To get over the aforesaid obligation of paying TDS on Rs. 10/, the respondent - assessee have shown that the drugs have been sold at Rs. 70/to M/s.Zivon i.e. net of commission. 7. As against the above, Mr.Mistri, senior counsel for the respondent - assessee submits t....