2014 (8) TMI 941

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.... the demand, raised under section 201(1)/201(1A) of the Income-tax Act, 1961, by the Assessing Officer. Since all the four appeals have common and consolidated grounds on identical issue, we propose to pass a common and consolidated order in all the four instant appeals for the sake of convenience and brevity. 2. For the sake of convenience, we are taking up I. T. A. No. 636/Mum/ 2011, pertaining to the assessment year 2002-03, as the lead year : I. T. A. No. 636/Mum/2011 : Revenue's appeal : assessment year 2002-03 3. The Department has raised the following grounds of appeal :          "1. The learned Commissioner of Income-tax (Appeals) has erred on facts and in law in deleting the d....

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....r to sector. 5. The Assessing Officer in the order passed by him, included therein, a part of the statement recorded by the officers in survey operations carried out on the business premises of the assessee, wherein chairperson of the assessee had deposed "that discounts were made available to the customers by the assessee". But, the Assessing Officer treated the same as "commission" given to the customers and therefore, held that the assessee was in default for not deducting TDS under section 194H and levied the penalty under section 201(1)/201(1A). 6. The assessee agitated the issue before the Commissioner of Income-tax (Appeals), who accepted the claim of the assessee that the discounts given to the customers were not commission pa....

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....Against this order of the Commissioner of Income-tax (Appeals), the Department is in appeal before the Income-tax Appellate Tribunal. 8. Before us, the Departmental representative relied on the order of the Assessing Officer, whereas the authorised representative relied on the order of the Commissioner of Income-tax (Appeals). 9. We have heard the contesting parties. The fact that needs to be addressed is whether a discount has the same nomenclature as that of commission, because, the Assessing Officer treated discount as commission. Even in normal parlance, commission is passed on to the person, who solicits the business, whereas discount is a reduction on the sale price. Here, the assessee is offering discount to its customers, wher....