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TMI Blog2013 (7) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... that the relation between them was that of principal-agent - it was clearly stipulated to be an arrangement between them on principal-to-principal basis – appeal decided against revenue. - I.T.A. Nos. 4473 & 4474/Del/2011 - - - Dated:- 12-7-2013 - Shri R. P. Tolani And Shri J. S. Reddy,JJ. For the Petitioner : Ms. Shumana Sen, DR. For the Respondent : Shri V. K. Jain, CA. ORDER Per J. S. Reddy, AM:- Both these appeals are filed by the revenue and are directed against the common order of the CIT (A)-XXX, New Delhi, dated 27.07.2011, for the A.Ys. 2002-03 2003-04. 2. Facts of the issue are brought out by the ld. CIT (A) in the following words at page 5 of the order: "The facts of the case are that the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the covenants of the agreement but failed to take note that all schemes of the assessee shall be implemented by the second party in the market in full spirit. It is only that the products of the assessee which are dealt by distributor / agent. Supervision is manifest in clause wherein the salesman -cum- delivery staff is provided by the assessee reports are furnished to the assessee company and the distributor / agent shall pay security deposit to the assessee. Further, in my opinion, the relationship between the assessee and the distributor agent is more in the nature of Del Credere agent and that the Hon'ble Court cannot hold that the transaction is that of principal to principal. 4. In a view of the nature of complete transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Aggrieved, the assessee carried the matter in appeal. The first appellate authority granted relief by observing that the issue in question squarely covered in favour of the assessee, by the order of the jurisdictional High Court in the case of Jai Drinks Pvt. Ltd. which is sustained sister Concern by observing that the facts and circumstances are identical in both the cases. 4. Aggrieved the revenue filed this appeal on the following grounds: "1) In deleting the demand raised u/s 201(1) 201(1A) of the IT Act on account of commission u/s 194-H treating the same as discount allowed to the distributors. 2. The appellant craves leave to add, alter or amend any of the Grounds of appeal at the time hearing." 5. We have heard Ms. Shumana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tructure including requisite staff under its employment with liability of PF contribution, ESI contribution, etc. as per the laws. It was specifically stated in clause 16 that the arrangements under this agreement are on principal-to-principal basis and nothing in this agreement shall be construed to confer the authority of an agent to bind the assessee. In clause 17 it was specifically mentioned that the distributor was to purchase the products of the assessee and was to be allowed discount per case on the printed MRP. In case of any breakage, leakage, etc., it was the distributor who was liable and not the assessee. Not only this, even all the approvals, consents, registrations, licenses, etc whatever may be required from departments or a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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