9911796707
TMI Blog2013 (8) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue for the assessment year 2008-2009, is directed against the order of the CIT(A)-XVI, Ahmedabad dated 20.5.2011. 2. The only ground of the appeal of the Revenue is as under: "1. The ld. CIT(A) erred in law and on facts in deleting the addition of ₹ 1,81,23,420/- made on account of disallowance u/s.40(a)(ia) for non-deduction of tax u/s.194H on sales incentives which was treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of the AO and the CIT(A). We find that the assessee-firm is distributor of M/s. Sheela Foam Pvt. Ltd. ("SFPL" for short) for the Gujarat State. The assessee has made payment of sales incentive to the dealers of "SFPL". The only issue in this case is regarding the nature of payment of sales incentive paid to the dealers of "SFPL" whether in the nature of commission or brokerage, within the meani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us dealers were given sales target and percentage of incentive was given on the basis of their performance/achievement of the sale target given to them. The CIT(A) has reproduced the relevant table of incentive depending on the higher achievement of sales in his appellate order. We find that the nature of payment by the assessee to various dealers of "SFPL" is an incentive to achieve more sales on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In these facts, we confirm the order of the CIT(A) in holding that the AO was not justified in treating the payment of incentives to the dealers as well as to another distributor, as payment of commission liable to TDS under section 194H of the Act, and that provision of section 194H are not at all applicable on the facts of the case, and in deleting the addition under section 40(a)(ia) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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