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TMI Blog2014 (5) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as a result of which she proceeded to pass an order of re-assessment having regard to the bar of limitation which was to expire on 31 March 2014 but subject to the decision of the Supreme Court in the pending special leave petition and of this Court in these proceedings. We consider it appropriate to accept the explanation of the Assessing Officer and drop the notice to show cause which has been issued to her. Decision in case of Jagran Prakashan Limited Versus The Deputy Commissioner Of Income Tax (Tds) [2012 (5) TMI 488 - ALLAHABAD HIGH COURT]followed wherein it was held that, (i) there is no relationship of principal and agent between the petitioner and the advertising agencies; (ii) the advertising agencies do not render any service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pal and agent between the petitioner and the advertising agencies; (ii) the advertising agencies do not render any service to the petitioner; (iii) 15% trade discount allowed by the petitioner to the advertising agencies is not a payment of commission within the meaning of section 194-H of the Income Tax Act; and (iv) the petitioner was not liable to deduct tax at source on the trade discount allowed to the advertising agencies and, hence, proceedings under section 201/201(1A) could not have been initiated against the petitioner. The reasons which were supplied to the petitioner for re-opening the assessment were also based on the same set of facts as would be evident from the reasons as disclosed on 30 April 2012 : "It is apparent th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014, this Court adjourned the hearing of the petition since the Court was apprised of the fact that the hearing of the aforesaid special leave petition before the Supreme Court was posted for 5 May 2014. However, in the meantime despite the order of stay, the Assessing Officer proceeded to pass an order of re-assessment on 31 March 2014. Hence, a notice to show cause was directed to be issued to the Assessing Officer to explain why despite being aware of the fact that an order of stay had been passed by this Court, she proceeded to complete the assessment. In pursuance of the notice to show cause, the Assessing Officer has filed an affidavit explaining her stand. The petition has been amended to challenge the order of re-assessment which w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve to be quashed and set aside. The order of re-assessment was passed by the Assessing Officer on 31 March 2014 despite the order of stay that was granted by this Court on 27 March 2014. Since the order of re-assessment is in pursuance of the notice under section 148 and despite the order of stay, we see no reason or justification to relegate the petitioner to the remedy of an appeal. In fact, the order of re-assessment itself states that it is being passed subject to the decision of the Supreme Court in the special leave petition which was filed by the Revenue and to the decision of this Court in these proceedings which were pending. We have duly considered the explanation which has been tendered by the Assessing Officer in her affidavit. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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