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TMI Blog2017 (5) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... 5/Hyd/2017 - - - Dated:- 6-4-2017 - Shri D. Manmohan, Vice President And Shri B. Ramakotaiah, Accountant Member For Revenue : Smt. Suman Malik, DR For Assessee : None ORDER Per B. Ramakotaiah, A. M. These four appeals are by Revenue against the common order of the Commissioner of Income Tax (Appeals)-9, Hyderabad dated 29-02-2016. 2. At the outset it is noticed that the appeals are filed belatedly with a delay of nineteen days. It was submitted that the delay is due to late receipt of authorization from Office of the Pr.CIT-II on account of transfer of Pr.CITs and also their busy schedules due to Income Declaration Scheme, 2016. Considering the prayer, the delay in filing the appeals is hereby condoned. 3. At ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bs are in the nature of commission attracting the provisions of Section 194H and if so, whether disallowance is to be made u/s. 40(a)(ia) for not deducting the TDS. Assessee submitted that there was a survey conducted on 17-12-2008 at the assessee s premises and the ACIT, Range-14 has not raised the demand u/s. 201(1) but raised interest u/s. 201(1A). However, while raising the demand, he has concluded that the relationship between the HRC and other clubs is in the nature of agent and principal and provisions of Section 194H squarely apply. Aggrieved by the orders, the issue was carried to the Ld.CIT(A), who after examining the detailed submissions had concluded, for AYs. 2001-02 to 2008-09, vide his order dt. 09-11-2009 that the natu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessing officer in order to give opportunity to the assessee to present its case and establish that there is no principal agent relationship between the assessee and the other clubs. I have found from the assessment order that the assessing officer has merely stated that there is principal agent relationship. He has not discussed as to what are the services provided by the agent to the assessee club. He merely relied on the word 'commission' in Turf club Authorities India resolution dt. 31- 03-2003. 7.4 The CIT(A)-II, Hyderabad while disposing the appeals on TDS matters for the A.Ys 2002-03 to 2008-09 in ITA Nos. 0046-0049 0016- 0025/CIT(A)- 11/09-10 dt 09-11-2009, discussed at length on the above issue and concluded tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ace club. For these reasons and the elaborate order of the CIT(A)-II referred to at para 7.4 above, I am unable to accept that these payments come under the purview of commission u/s 194H. 7.7 Thus, I hold that the disallowance made by the assessing officer u/s 40a(ia) is not sustainable. Since there is no liability to deduct TDS itself, the other ground raised by the assessee on the amendment made in Sec. 40a(ia) becomes academic and need not be adjudicated . 7. Since the order of Ld.CIT(A) is in consonance with the orders of the CIT(A) on the issue upto AY. 2008-09 on which Revenue has not preferred any appeal and also in tune with the findings given by ITAT in AY. 2009-10, there is no need to interfere with the order of the Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X
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