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TMI Blog2014 (8) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... Airways [2009 (3) TMI 598 - BOMBAY HIGH COURT], wherein the hon'ble lordships were seized with identical issue and held that the provisions of section 194H are not attracted in the case of discount, being passed to the customer. - view taken by the Commissioner of Income-tax (Appeals) is correct, when he observes, "it is merely a discount to the customers on which TDS provisions are not attracted". We, therefore, sustain the view of the Commissioner of Income-tax (Appeals) and as a consequence, both grounds raised in the GOA are rejected. - Decided against Revenue. - ITA No. : 636/Mum/2011, ITAs No. : 8872 to 8874/Mum/2011 - - - Dated:- 6-8-2014 - SHRI N.K. BILLAIYA AND SHRI VIVEK VARMA, JJ. For the Appellant : Shri Durga Dutt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... handling and other service charges whereas such expenses, in sub stance and effect are in nature of commission within the meaning of section 194H of the Income-tax Act, 1961. 3. The learned Commissioner of Income-tax (Appeals) has erred on facts and in law in ignoring the pith and substance rule, which is an accepted canon of interpretation in jurisprudence, and merely gone by the form of classification of such expenses as handling and other service charges though in substance and effect such expenses are in nature of commission expenses. 4. The facts are that the assessee is a registered IATA air travel agent, carrying on the business of air ticketing on domestic and international sectors. Having intense cut throat competition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... customers as 'commission' which is not correct. This is merely discount which is passed on to the customers by the agent. I agree with the appellant that the airlines deducts TDS under section 194H from the commission paid by them to the agent as the agent is rendering services to the airlines by getting a booking of passengers but the amount passed on by the travel agent to the passengers is not a commission as no services are rendered by the customer to the agent for getting a ticket. It is merely a discount to the customers on which tax deducted at source provisions are not attracted. In view of the above facts, the action of the Assessing Officer is not justified treating the appellant as assessee in default' for not deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, when he observes, it is merely a discount to the customers on which TDS provisions are not attracted . We, therefore, sustain the view of the Commissioner of Income-tax (Appeals) and as a consequence, both grounds raised in the GOA are rejected. 11. In the result, the appeal filed by the Department is dismissed. I. T. A. Nos. 8872 to 8874/Mum/2011 : Revenue's appeals : assessment years 2003-04 to 2005-06 12. As grounds and issues involved in these three appeals filed by the Revenue are identical to grounds and issues decided by us in paragraphs 3 to 11 of this order in for the assessment year 2002-03. The decision in the instant three appeals is as per the decision, we have taken in I. T. A. No.636/Mum/2011, which we foll ..... X X X X Extracts X X X X X X X X Extracts X X X X
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