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TMI Blog2018 (10) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... of prize winning lottery tickets is claimed from the government agency supplying the lottery tickets to the assessee. The government agency after deduction of TDS credits the value to the account of the assessee who, thereafter, passes on the same to the sub agents. In the facts of the present case we find that the application of section 194G/194H of the Act was not warranted. While delivering the decision of the Tribunal, the Tribunal took note of the binding decision of the Jurisdictional High Court in the case of M.S. Hameed and Ors. Vs. Director of State Lotteries [2000 (11) TMI 63 - KERALA HIGH COURT] wherein it was held that the assessee is not liable to deduct TDS under section 194G, no disallowance under section 40(a)(ia) is called ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal. Accordingly, we condone the delay and admit the appeal for adjudication. 4. The facts of the case are that the Assessing Officer disallowed the amount of ₹ 1,00,50,000/- under section 40(a)(ia) of the Act on the ground that the assessee failed to deduct tax u/s. 194G of the Act on commission paid to subagents. 5. On appeal, the CIT(A) allowed the appeal of the assessee by placing reliance on the decision of the ITAT, Cochin Bench in the case of M/s. Meenakshy Enterprises in ITA No. 510/Coch/2013 dated 25/10/2016 and held that provisions of section 194G of the Act are not applicable to payments made to sub-agents by the assessee. 6. Against this, the Revenue is in appeal before us. The Ld. DR submitted that facts and circum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terprises cited supra wherein it was held as under: "10. The provisions contained in section 194G of the Act provides for deduction of TDS by any person who is responsible for paying to any person, who is stocking, distributing, purchasing or selling lottery tickets, any income by way of commission, remuneration or prize on such tickets, at the time of credit of such income to the account of the payee. The said section has to be read as a whole and the requirement of deduction of tax will only arise when there is a payment of income by way of commission, remuneration or prize on lottery tickets. In the resent case, the assessee is not giving any commission to the sub agents as there is a sale being effected between the assessee and the su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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