2021 (10) TMI 1114

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....i Sawana i/b. Mr. Sriram Sridharan for respondent.   P.C. : 1. Appellant is impugning an order dated 30th September 2016 passed by the Income Tax Appellate Tribunal (ITAT) and the substantial questions of law proposed are as under : "a) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was justified in holding that the relationship between t....

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....es. For example, collection centres would charge a patient Rs. 500/- for a particular blood test and hand over the sample drawn to respondent and respondent would charge the collection centre Rs. 400/-. The difference of Rs. 100/-, according to appellant, is commission to paid to collection centres and respondent had an obligation under Section 194H of the Income Tax Act, 1961 (the IT Act) to dedu....

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....een respondent and collection centres is only principal to principal relationship and therefore, provisions of Section 194H have no application. 4. Section 194H of the Act reads as under : 194H. - Commission or brokerage Any person, not being an individual or a Hindu undivided family, who is responsible for paying, on or after the 1st day of June, 2001, to a resident, any inco....

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....o is responsible for paying any income by way of commission or brokerage to deduct tax at source at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier. In this case, admittedly, respondent has not been paying any money to the collection centres. Respondent was....