2024 (4) TMI 1261

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....nal fell into error in its interpretation of Section 194-H of the Income Tax Act, 1961 in the facts and circumstances of the case?" 2. Undisputedly the aforesaid questions stands answered in favour of the assessee in light of the judgment rendered by the Supreme Court in Bharti Cellular Ltd. v. CIT [2024 SCC OnLine SC 198]. 3. While dealing with the same, the Court had in Bharti Cellular held as follows: "39. Coming back to the legal position of a distributor, it is to be generally regarded as different from that of an agent. The distributor buys goods on his account and sells them in his territory. The profit made is the margin of difference between the purchase price and the sale price. The reason is, that the distributor in such case....

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....is free from control on the part of his employer, and is only subject to the terms of his contract. But an agent is not completely free from control, and the relationship to the extent of tasks entrusted by the principal to the agent are fiduciary. As contract with an independent agent depends upon the terms of the contract, sometimes an independent contractor looks like an agent from the point of view of the control exercisable over him, but on an overview of the entire relationship the tests specified in clauses (a) to (d) in paragraph 8 may not be satisfied. The distinction is that independent contractors work for themselves, even when they are employed for the purpose of creating contractual relations with the third persons. An independ....