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TMI Blog2003 (9) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... of the tickets allowed by the airlines to the customers against the listed price of the tickets. - As rightly pointed out, by virtue of the injunction order, the respondents, particularly, respondent No. 13 (British Airways) is prohibited from implementing the orders of the income-tax authorities – I do not find any valid ground to continue the injunction order X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. This provision was omitted by the Finance Act, 1999, with effect from April 1, 2000. While this is so, the Finance Act, 2001, reintroduced section 194H with effect from June 1, 2001. Mr. V. Ramachandran, learned senior counsel for the petitioners, after taking me through section 194H of the Act, which came into force with effect from June 1, 2001, would contend that the aforesaid provision applies only to commission or brokerage paid by a person to whom section 194H applies. According to him, respondents Nos. 4 to 21 have taken the stand purporting to be on the basis of the view expressed by respondents Nos. 1 to 3 that tax is deductible at source on the discounts that are allowed by the airlines and sales agents on the sale of tickets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent, would contend that the income-tax authorities have launched the proceedings against the 13th respondent on account of not having deducted tax at source on the discount/rebates being provided to the customers against the listed price of the tickets. The Deputy Commissioner of Income-tax has passed an order on September 30, 2002, holding that the rebates/discounts being offered by British Airways (13th respondent) to its customers is a part and parcel of the commission paid by the British Airways to its dealers/agents, for the services rendered in connection with booking of tickets and the same is covered under the provisions of section 194H of the Act. He further contends that against the order of the Deputy Commissioner of Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (respondent No. 13) to its customers is a part and parcel of the commission paid to us dealers/agents for the service rendered in connection with the booking of tickets and the same is covered under the provisions of section 194H of the Act. Though it is stated that both the said orders of the income-tax authorities are under challenge by way of further revision the fact remains, as per the orders of the income-tax authorities, the respondents, particularly, the 13th respondent is bound to deduct tax at source in respect of the discounts and rebates. As rightly pointed out, by virtue of the injunction order, the respondents, particularly, respondent No. 13 is prohibited from implementing the orders of the income-tax authorities. In the eve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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