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TMI Blog2018 (1) TMI 1297X X X X Extracts X X X X X X X X Extracts X X X X ..... icate cannot therefore be treated as assessee’s income. The fact that the money payable to the retailers and runners is outstanding in the balance sheet cannot be a ground to hold that the sum reflected in the TDS certificate is income of the assessee. On the question of credit for TDS the assessee has reflected a sum of ₹ 94,381/- in the total income declared for the relevant assessment year and to this extent is entitled to credit. As far as the remaining sum is concerned since the sum in question is not the income of the assessee and further it has not been offered to tax in the relevant assessment year the assessee cannot claim credit for TDS. To this extent the action of the revenue authorities have to be held as proper. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TDS certificate comprises of payment made by Vodafone not to the assesee. The assessee explained that it was the distributor of SIM card and E-charge vouchers of Vodafone. Vodafone had a scheme for giving commission/special incentive/CAF to retailers and runners. The payment to such retailers and runners were routed through the assessee and the assessee had no title, right or interest whatsoever on the aforesaid payment. The total amount of commission/special incentive/CAF payable to the retailers was a sum of ₹ 25,65,832/- plus service tax at 12.36% of ₹ 3,20,229/- in all a sum of ₹ 28.82,061/-. Vodafone had settled the aforesaid due by making payment of ₹ 28,78,150/-. The second component comprised in the TDS certi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harge of ₹ 94,381/- none of the other charges were reflected in the profit and loss account of the assessee and was taken into account in computing the total income of the assessee. The AO accordingly made an addition of ₹ 28,66,577/- to the total income of the assesee (Rs.29,60,958/- - ₹ 94,381/-) . 7. Aggrieved by the order of AO the assessee preferred appeal before CIT(A). The submissions made before AO were reiterated before CIT(A). The CIT(A) posed two questions to the assessee (i) the manner in which the assessee has paid the retainers their commission/incentive and payment to runners (ii) if payments are due to the third parties how the assessee can claim credit for TDS when the sum in question is not reflected i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entification of all the runners as well as retainers were also shown to the AO at the time of assessment proceedings as is evident from the following order sheet made by the AO in the course of assessment proceedings on 02.09.2010. Mr. Uday Kr. Saha A/r appeared today. He submitted the retailer scheme claim statement and bill of company s regarding the scheme claimed, list of retainer with full address. The case is partly heard. The case is adjourn on 19/11/10. Thus it is clear that the full address of the retailers had been furnished before the AO. In the given circumstances we are of the view that there was no basis for the CIT(A) to conclude that the assessee has not explained as to how the sum in question is payable to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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