2015 (6) TMI 483

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....umentative in nature. It has taken 4 main grounds and in each main ground, it has taken three sub-grounds. However, its grievance revolves around the single issue i.e., whether the ld. AO is justified in treating the discount offered by the assessee to pre-paid distributors in the nature of ''commission'' within the meaning of section 194H of the I.T .Act, 1961 and accordingly justified in holding the assessee as ''ássessee in default'' for non-deduction of tax under section 194H of the Act. It further pleaded that the ld. CIT(A) has erred in upholding the conclusion of the AO for treating the assessee as ''assessee in default'' and consequently levying interest under section 201(1A) of the I.T. Act. 2. Brief facts of the case are....

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.... person for services rendered, it amounts to commission/brokerage which attracts TDS under section 194H of the Act. The ld. AO has confronted the assessee and thereafter treated it in default. The ld. AO has calculated the amount under section 201(1) and interest under section 201(1A) :- F.Y. 201(1) 201(1A) Total demand 2007-08 21604779 6333102 27,937,881 2008-09 30603857 5271105 35,874,962 2009-10 31211523 1913478 33,125,001 Total 83420159 13517685 96,937,844  In this way, the ld. AO has worked out the demand by a common order dated 25.3.2010 passed under section 201(1) & 201(1A) of the I.T. Act, 1961 for AY 2008-09, 2009-10 & 2010-11. 3. Appeal to the CIT(A) did not br....

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....r Companies. At the time of sale of pre-paid cards by the assessee to the pre-paid distributors income has not accrued or arisen to the pre-paid distributors and there is no primary liability to tax on the pre-paid distributors. The ld. counsel pointed out that all these decisions have travelled to the Hon'ble Supreme Court. The appeals at the end of the assessee as well as at the end of revenue were taken up for regular hearing after admission. Now the appeals are fixed in the month of September. He pointed out that when there is a conflict of opinion on a particular issue amongst various High Courts then the view favourable to the assessee ought to be followed. He submitted that the decision of Ho'ble Karnataka High Court is in favour of ....