2018 (5) TMI 2104

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....d in providing cell phone services in various circles of India, had not deducted taxes on the commissions paid to agents on prepaid SIM cards and recharge coupons which are sold through agents. The A.O 2 ITA.No. 4 asked the assessee to furnish the information with regard to the TDS payments. The assesse furnished the information which were called for and after examining the same, the A.O was of the opinion that the assessee has to deduct the tax u/s 194H of the income tax Act and for the failure of the assessee to do so, he held the assessee to be an assessee in default u/s 201(1) of the Act. He also observed that similar issue had arisen in the assessee's own case in earlier assessment years i.e 2007-08, 2008-09 and 2009-10 which had ....

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.... No.1. 2. Ground No.2 - The Appellant is not liable to deduct tax at source on discount extended to its pre-paid distributors on distribution of pre-paid services 2.1. On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned TDS Officer in treating the Appellant as 'assessee in default' for non-deduction of tax at source under section 194H of the Act on discount extended of INR 16,69,64,776 by the Appellant to the distributors of its pre-paid services. 2.2. On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the contention of the learned TDS Officer that the relationship between the Appellant and the pre-paid distri....

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....- No TDS demand can be raised under section 201(1) of the Act 3.1. On the facts and circumstances of the case and in law, the order of the learned TDS Officer, as upheld by learned CIT(A), is bad in law in so far as it seeks to recover tax demand under section 201 of the Act in contradiction to the settled principle that the payer cannot be held liable for payment of the tax demand in cases involving non-deduction of tax at source and only interest liability under section 201 (IA) of the Act, if any, can be levied in such cases 3.2. Without prejudice to Ground No 3.1 above, on the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the action of the learned TDS Officer in raising demand under sect....

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....e was also intimated to the A.O and the CIT(A)-8, Hyderabad, vide letters dated 11.12.2015. It is stated that the A.O had issued the notice u/s 201(1) and 201(1A) of the IT Act to the assessee in its correct name, but, the final assessment order was passed in the name of a non-existing company i.e Vodafone South Ltd. It is submitted that the assessment order in the name of non-existing company is not sustainable as held by the Hon'ble Delhi High Court in the case of Spice Entertainment Ltd., in ITA No. 475 of 2011 and 476 of 2011 dated 03.08.2011. He therefore, argued that the assessment itself has to be set aside. 5. The Ld. DR however, submitted that the initiation of the proceedings was in the correct name of the assessee only i.e.....