2016 (1) TMI 315

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....DS pertaining to Thane Branch the above company was allotted a TAN bearing No. PNER07782F. The company is engaged in the manufacturing and sale of cloth and merchandise. A survey u/s 133A of the Income Tax Act,1961 (in short 'the Act') was conducted in the office premises of the assessee to ascertain whether TDS has rightly been deducted on 09.03.2008 or not. The issue which was taken at that time is that whether the assessee is liable to deduct TDS on sales incentives and rebates or not. The Assessing Officer took a view that the case of the assessee falls u/s 194H of the act therefore, the assessee was under obligation to deduct the T.D.S upon the rebates and incenties in accordance with law. Subsequently, assessee filed an appeal....

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..... 1 above. 4.3. Bonus will be paid only on net value of dispatches, provided, the buyer takes delivery of goods ordered and pays for them within the stipulated period or as per the terms of the contract. If the buyer fails to fulfill his obligations in any way, bonus is liable to be forfeited on the specific documents AND/IR for the year. 4.4. The slabs of bonus will be as follows: 4.4.1 For all Retailers and Franchisees of Fabrics in Agra, Ahmedabad, Bangalore, Bhopal, Mumbai, Calcutta, Coimbatore, Delhi, Hyderabad, Indore, Jaipur, Kanpur, Ludhiana, Chennai, Nagpur, Patna, Pune, Secunderabad, Surat, Thane and Vadodara (hereinafter referred to as the 'SPECIAL CITIES') 1.0% - 3000 meters and 4000 m....

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....gular Cities'. 1.5% - 12000 metres and 20000 metres 2.5% - 20001 metres and 35000 metres 3.5% - 35001 metres and above 4.4.5 For all wholesalers of Fabrics in 'Regular cities' 1.5% - 15000 metres and 30000 metres 2.5% - 30001 metres and 50000 metres 3.5% - 50001 metres and above 4.5. Rugs, Blankets and Shawls will be treated as separate product group, having independent bonus slabs 4.5.1 The slabs of bonus for Rugs, Blankets & shawls will be determined by aggregating the total quantity of nett confirmation in pieces which will be arrived at on the following basis a) Exotic, wool mark & woolen (series 111, 178, 277, 195, 401 & 404) Rugs, Bla....

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....of section 194H of the Act is not applicable to the facts and circumstances of the case. Therefore, the order in question dated 26.03.2010 is wrong against law and facts and is liable to be set aside in view of the law settled in [2008] 173 taxman 54(Delhi) case titled as Delhi Milk Scheme vs. CIT Delhi, [2015] 59 taxmann.com 176 (Calcutta) titled as Hutchison Telecom East Ltd. Vs. CIT, TDS, Kolkata & [2010] 42 SOT 125, Mumbai in the ITAT Mumbai 'B' bench in case titled as Mahesh Enterprises Vs. Income Tax Officer Ward 22(1)(1). However, on the other hand learned representative of the assessee refuted the said contentions and argued that there is no relation of principle and agent with the Franchisee holder and infact in view of the....