Court Rules No TDS Deduction Needed for SIM Card Sales; Principal-Principal Relationship Affirmed.

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....The Delhi High Court addressed a case involving TDS u/s 194H for non-deduction of TDS on transactions between the Appellant and distributors regarding the sale of SIM cards/Recharge Vouchers. The key issue was determining whether the relationship between the Appellant and distributors was that of principal and agent or principal and principal. The court referred to the Supreme Court decision in Bharti Cellular Limited, emphasizing that the term "agent" involves a specific legal relationship where one party has the power to affect the legal position of the principal through contracts or property disposition. The court held that the Appellant was not obligated to deduct tax at source on certain payments received by distributors, and Section 1.........