2003 (10) TMI 20

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....as delivered by R. JAYASIMHA Babu J. -The appellants are agents for several airlines. They receive commission on tickets they sell to passengers who travel on those airlines. According to the appellants, they receive commission on the amount for which tickets are sold to the passengers. The airlines however, in their accounting system have shown the difference between the air fare fixed in acco....

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....ate Tribunal at Delhi, which appeals are pending. The prayer in the writ petition filed by the appellants before us is for a declaration that "tax shall be deducted at source under section 194H of the Act only in respect of commission actually paid or payable by respondents Nos. 4 to 21 to the petitioners on the face value of the tickets and no tax can be deducted in respect of discount or reba....

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.... in their books as "supplementary commission", that nomenclature having been used to refer to the amount in excess of the normal commission of nine per cent, of the normal value of the ticket which was made available to the agent at a much lesser price. The airlines could very well have described that difference as a discount given to the agents but, they have not chosen to do so. The description ....

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....he court injuncting the person, who may otherwise be liable to deduct tax, from deducting tax on payment made to the agents. We must also notice that the appellants have not placed before the court the scheme under which the payments are made or accounted. It is the definite stand of the caveator airline that what is made available to the agents is supplementary commission, which amount the age....