2003 (9) TMI 27

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....tickets and no tax can be deducted in respect of the discount or rebate on the price of the tickets allowed by the airlines to the customers against the listed price of the tickets. While admitting the writ petition on July 25, 2003, this court in W. P. M. P. No. 25809 of 2003, granted interim injunction and ordered notice to the respondents. Pursuant to the notice, British Airways-13th respondent, has filed W. V. M. P. No. 1661 of 2003, for vacation of the interim injunction granted on July 25, 2003, in W. P. M. P. No. 25809 of 2003. Heard Mr. V. Ramachandran, learned senior counsel for the petitioners, J. Narayanasamy, junior standing counsel for Income-tax Department and Mr. R. Krishnamurthy, learned senior counsel for the 13th res....

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....d promotional packages offered by them, notwithstanding that such discounts are not given to the petitioners or travel agents, but are directly passed on to the customers by the airlines or their sales agents. Further such a stand of the respondents would be totally opposed to the provisions under section 194H of the Act, which would cause considerable business and financial embarrassment constituting unreasonable restriction on the business carried on by the petitioners. He pointed out that in the light of the stand taken by respondents Nos. 1 to 3, the respondents Nos. 4 to 21, who are airline companies, operating air services within India and outside have sought to deduct tax at source out of the amounts payable by them to the petitioner....

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....fore the Commissioner of Income-tax (Appeals), New Delhi. By order dated January 31, 2003, the Commissioner of Income-tax (Appeals), allowed the appeals to the limited extent that the provisions of section 194H of the Act, having come into effect from June 1, 2001, the Assessing Officer ought not to have included those transactions which took place prior to June 1, 2001. The Commissioner, however, held against respondent No. 13, on the applicability of the provisions of section 194H of the Act to the rebates/discounts being provided by the 13th respondent to its customers. By placing the orders of the Deputy Commissioner of Income-tax and the Commissioner of Income-tax, learned senior counsel appearing for the British Airways would contend ....