2024 (3) TMI 385 - SCH - Income Tax

TDS u/s 194H - Principal-Agent relationship - discount given on sale of prepaid services, SIM and recharge vouchers by the cellular operator (assessee) to its distributors - As decided by HC 2021 (9) TMI 1273 - KARNATAKA HIGH COURT section 194H of the Act is attracted to the facts of the case is unsustainable HELD THAT - In view of the judgment titled Bharti Cellular Limited (Now Bharti Airtel Limited) vs. Assistant Commissioner of Income Tax, Circle 57, Kolkata Anr. 2024 (3) TMI 41 - SUPREME COURT wherein held that 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 - Thus the present special leave petitions are dismissed.

Summary

The Supreme Court dismissed special leave petitions based on a previous judgment dated 28.02.2024 in the case of Bharti Cellular Limited vs. Assistant Commissioner of Income Tax. Delay was condoned, and pending applications were disposed of.