TaxTMI 
TaxTMI 
2021 (6) TMI 354
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....7-18 order dated 13/10/2017. Assessee has taken following grounds of appeal: Ground of Appeal GROUND NO. I: ORDER PASSED BY LD. CIT(A) IS BAD IN LAW. 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in upholding the order passed by the Ld. AO wherein the Assistant Commissioner of the Income Tax (OSD), TDS ("the TDS Officer") has not followed the directions of the Hon'ble Income Tax Appellate Tribunal, Ahmedabad ("Tribunal"). 2. The Appellant prays that the order passed by the TDS Officer u/s. 201(1)/201(1A) of the Act be quashed/ annulled. WITHOUT PREJUDICE TO GROUND NO. I, GROUND NO. II: TREATING THE ASSESSEE AS "ASSESSEE IN DEFAULT" U/S. 201(1). ....
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....ice, if mechanism to deduct tax at source fails as there is neither 'payment' nor 'credit' of the difference between Maximum Retail Price and Distributor Price in favour of the Distributor and Appellant is not person responsible for paying any income to the Distributor, 194H does not apply. 3. The Appellant prays that the discount allowed to the Distributors be held as not liable to TDS u/s. 194H of the Act and therefore, the Appellant cannot be held as an "assessee in default" under section 201(1) of the Act. GROUND NO. IV: INTEREST LEVIED UNDER SECTION 201(1A) OF THE ACT. 1. On the facts and in the circumstances of the case and in law, the Learned CIT(A) erred in confirming the order passed by th....
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.... 4. Appellant relied on the decision of Hon'ble Allahabad High Court in the case of Jagran Prakashan Ltd. vs. DCIT (2012) (345 ITR 288) (All.) wherein it was held that where tax has not been deducted at source or short deducted by the assessee then the assessee is only liable for interest and penalty. The tax amount, which was already paid by the recipients on their income, is not required to be recovered from the assessee since it would amount to taxing and recovering the tax twice. 5. But Ld. A.O. did not agree with the plea of the assessee and held that payment made by the assessee company to the prepaid distributors is in the nature of commission liable for TDS u/s. 194H of the Act. The assessee is treated as assessee in default u/....
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....igh Courts even though such view was against the assessee as under: "11. The above discussion makes it very evident that pre-dominant majority of the High Courts have taken the view that while working out. gross total income of the assessee the losses suffered have to be adjusted and if the grays total income of the assessee is 'nil' the assessee will not be entitled to deduction under Chapter VI-A of the Act. It is well settled that where the predominant majority of the High Courts have taken certain view on the interpretation of certain provisions, the Supreme Court would lean in favour of the predominant view. Therefore, this Court is of the opinion that the High Court was justified in holding that gross total income mus....