TaxTMI 
TaxTMI 
2017 (8) TMI 442
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....me Tax Act, 1961 (hereinafter referred to as the Act). 3. Facts of the case in brief are that the assessee filed the return of income on 26.09.2010 declaring an income of Rs. 2,25,560/- which was processed as such. Later on, the case was selected for scrutiny. During the course of assessment proceedings, the AO asked the assessee to file complete details, clearly stating the name, address, PAN of the persons to whom activation scheme amounting to Rs. 4,80,270/- and discount amounting to Rs. 75,47,717/- were paid. He also asked the assessee to explain as to why tax at source on those payments was not deducted and deposited and that as to why those amount be not added to the income u/s 40(a)(ia) of the Act. The AO did not find merit in the....
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....his own staff and its genuineness, as such, cannot be ascertained. Since the assessee has failed to give any reliable and sustainable evidence in support of his contention that he has actually parted with this money to this extent to various customers/retailers, the entire amount of Rs. 4,80,270/- and Rs. 75,47,717/-, totaling Rs. 80,27,987/- shown under the head "activation scheme and discount" respectively is added to the returned income of the assessee on account of nonproduction of any reliable and sustainable evidence in support of his contention." 4. Being aggrieved the assessee carried the matter to the ld. CIT(A) who deleted the addition by following the order of the ITAT dated 22.02.2013 in assessee's own case. 5. No....
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....ere was no agreement in existence between the assessee and the customers. The assessee, during the year, was an authorized franchisee of Bharat Sanchar Nigal Ltd. (i.e. BSNL) vide agreement dated 12.01.2007 (copy at pages 17- 36 of the assessee's paper book-"APB for short)". Under the agreement, the assessee was to provide services to walk-in customers. It was to distribute all types of authorized telecom services. No dealer or sub-dealer was appointed. The discount/commission was allowed as per the agreement. This position remains undisputed. The retailers simply bought SIM cards/recharge coupons from the assessee at a discounted price. These were sold in the market with no specific obligation towards the distributor. 16. The Asse....
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.... by BSNL. Franchisee shall also distribute all types of authorized telecom services for marketing to its Franchisees and cash card (prepaid) to its retailers. No dealer/sub-dealer was either appointed by BSNL on the assessee. The assessee is allowed commission/discount as per Annexure-B and section-III of the said agreement." 18. Since no dealer or sub-dealer was appointed either by Bharat Sanchar Nigam Ltd. (BSNL) or by the assessee, for the purpose of marketing the products and/or service of the Bharat Sanchar Nigam Ltd., the entire sales were to customers, either directly or through shopkeepers, who rendered services to the customers. Moreover, the entire sales were in cash. No commission was paid by the assessee to the....
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....ounts offered to the customers, on a principal to principal basis, on which, no TDS was either required to be made or was actually made. 20. In 'ITL Tours & Travels' (supra), where the assessee was taking airlines tickets, the discount given to intermediaries was held not to be commission, since it was deal on a principal to principal basis and there was no element of agency involved. No TDS was held to be done u/s 194H of the Act. 21. In 'Surndra Buildtech (supra), the assessee was in the real estate business. It received commission from builders for booking flats. Portion of such commission was paid to buyers of flats. It was held that this was like giving a discount to buyers and was not commission and so section 194H o....