TaxTMI 
TaxTMI 
2019 (6) TMI 1477
X X X X Extracts X X X X
X X X X Extracts X X X X
....Nigam Limited (BSNL) is in the business of telecom operatives and providing telecom services. The assessee company provides its services through the distributors by selling them starter packs and rechargeable coupons commonly known as Subscriber Identification Mobile Cards (SIM Card and Prepaid Card). These SIM cards and rechargeable coupons were purchased by distributors/franchisees appointed by the assessee at a rate below the market price and they were sold to the retailers who ultimately sold them to the customers. The Assessing Officer (AO), while going through the records, came to the conclusion that the assessee had paid commission on starter packs and rechargeable coupons to the franchisees and had deducted tax at source in earlier ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Ld. CIT(A) in its order. More specifically, the Ld. CIT(A) failed to consider, discuss and reject the following case laws while ruling against the assessee: * Hon'ble Karnataka High Court's common judgment in the case of Bharti Airtel Limited, Tata Teleservices Limited and Vodafone South Limited, reported as Bharti Airtel Limited vs. DCIT [(2015) 372 ITR 33 (Kar)] * CIT vs. Vegetable Products Ltd. [(1972) 88 ITR 192 (SC)] * Vodafone Essar Gujarat Limited vs. ACIT, TDS Circle, Ahmedabad- ITA No.386/Ahd/11 * Hindustan Coca Cola Beverages (P.) Ltd. (2007) 211 CTR (SC) 545: (2007) 293 ITR 226 (SC) * Jagran Prakashan Ltd. vs. Dy. CIT (2012) 73 DTR (All) 233: (2012) 251 CTR (All) 65 3. The app....
X X X X Extracts X X X X
X X X X Extracts X X X X
....le by the distributor for the services to be rendered to the assessee and the same fell within the definition of commission or brokerage under explanation (i) to Sec. 194H of the Act. It was submitted that the contention of the assessee that the relationship between the assessee and the distributors was on principal to principal basis was incorrect and in fact there was a principal to agent relationship as had been held by the Hon'ble High Court of Delhi in CIT vs. Idea Cellular Ltd. reported in 325 ITR 148 and the Hon'ble High Court of Kerala in the case of Vodafone Essar Cellular Ltd. vs. ACIT reported in 332 ITR 255. It was contended by the Ld. Sr. Departmental Representative that the demand had rightly created by the AO in this case. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and particularly as there is no dispute that the factual matrix of all the cases before the Hon'ble non jurisdictional High Courts were materially the same as in this case, in conformity with the esteemed views of Hon'ble Karnataka High Court in Bharti Airtlel's case (supra), and hold as follows: (a) On the facts of the case, and as is evident from a reading of the agreements before us, the assessee has sold, by way of prepaid vouchers, e-top ups and prepaid SIM cards., the 'right to service' on principal to principal basis to its distributors. As evident from the terms and conditions for sale, placed at page 136 of the paper-book, not only that the sale was final and the assessee was not responsible for any post-delive....