2019 (3) TMI 393

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....17 for the assessment year 2012-13. 2. The Revenue has filed this appeal by raising the following substantial questions of law : "i. Whether the Tribunal was right in deleting the disallowance made by the Assessing Officer under Section 40(a)(ia) of the Income Tax Act, 1961 on commission payment for non deduction of TDS under Section 194H by holding that the payment was not in the nature of commission, but in the nature of income sharing arrangement overlooking the contract ? And ii. Whether the Tribunal was right in deleting the disallowance made by the Assessing Officer under Section 40(a)(ia) of the Income Tax Act, 1961 on commission payment for non deduction of TDS under Section 194H overlooking the notes to the fin....

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.... Income Tax (Appeals)-13, Chennai [for brevity, the CIT(A)] and it was dismissed holding that the invoices were raised for the entire sales, that the commission was credited to the two companies and that it was mandatory on the part of the assessee to deduct TDS as required under Section 194H of the Act. Accordingly, the disallowance made by the Assessing Officer was confirmed. 8. Aggrieved over the same, the assessee preferred an appeal to the Tribunal and it was allowed in favour of the assessee holding that the agreements entered into by the assessee with M/s.TQ Services and more particularly Clause 6.6 shows the methodology of demarcation of the fees collected. The modus was examined by the Tribunal and it was held that the assessee ....