2023 (3) TMI 1466 - SCH - Income Tax

TDS u/s 194H - tds on payments made to distributors towards price protection and special price clearance discounts - relationship between the assessee and the distributor is that of Principal to Principal OR Principal to Agent - as decided by HC 2023 (8) TMI 456 - KARNATAKA HIGH COURT factual findings recorded by the CIT(A) that payment from the distributor to the assessee has no link with the further sale made by the distributor and same having been confirmed by the ITAT which is the last fact finding authority, decided against revenue. HELD THAT - As petitioner submits that the matter is covered by the decision of Bharti Cellular Limited 2024 (3) TMI 41 - SUPREME COURT as held assessees would not be under a legal obligation to deduct tax at source on the income/profit component in the payments received by the distributors/franchisees from the third parties/customers, or while selling/transferring the pre-paid coupons or starter-kits to the distributors. Section 194-H of the Act is not applicable to the facts and circumstances of this case. In view of the statement made, Special Petition is dismissed as being covered by the above-mentioned decision.

Summary

The Supreme Court dismissed a Special Petition citing a previous decision in Bharti Cellular Limited vs. Assistant Commissioner of Income Tax. The delay was condoned, and pending applications were disposed of.