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TMI Blog2014 (8) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... type of services to the assessee. They have just booked the flat through the assessee. In fact, assessee is an agent between the builder and the ultimate purchaser of the flats. The assessee has parted with some part of the commission received from the builder from alluring the purchaser so that it can earn more commission. It is just providing a discount to the purchaser and not paying any commission for any services taken from such customers. It appears that Ld. AO was influenced by the nomenclature of the receipt in the hands of the assessee. He failed to distinguish what character such receipt would attain when it will be offered to the customer. The relationship between the assessee and the purchaser of the flat is of buyer and seller ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various such persons, the TDS had been deducted at source and all the persons were regular income-tax assessees and were in the business of real estate since last so many years. 2.2. The persons who had applied for the launched original bookings directly themselves, in their own names, the assessee allowed them incentive/ discount against their bookings on account of commercial and business expediency. 2.3. The assessee had filed its return of income declaring income of ₹ 41,02,408/-. The assessment was completed u/s 143(3) at a total income of ₹ 44,62,510/- on 29-12-2008. Thereafter notice u/s 148 was issued on 31- 3-2011 after recording the following reasons: Perusal of records revealed that the assessee has debited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eleted the disallowance, inter alia, observing that the marketing expenses were in the nature of incentives/ discounts and had been incurred on account of commercial expediency and allowed to the persons who had booked the property through the assessee and were not in the nature of commission as contemplated u/s 194H of the Act. 2.7. Being aggrieved with the order of ld. CIT(A), the department is in appeal before us and has taken following ground of appeal. On the facts and circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of ₹ 57,71,536/- made by the AO on account of marketing expenses inclusive of incentive and discounts. 3. We have considered the rival submissions of the parties and have perused ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such commission or brokerage is credited or paid, shall be liable to deduct income-tax under this section: Provided also that no deduction shall be made under this section or any commission or brokerage payment by Bharat Sanchar Nigam Limited or Mahanagar Telephone Nigam Limited to their public call office franchisees. Explanation. - For the purposes of this section :- (i) commission or brokerage includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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