9911796707
TMI Blog2024 (5) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... re-paid coupons or starter-kits to the distributors - relationship between the appellant and its distributors - demand u/s 201(1)/201(1A) - HELD THAT:- As per ratio of judgment in Bharti Cellular Ltd. [ 2024 (3) TMI 41 - SUPREME COURT ] it is well settled that assessee would not be under a legal obligation to deduct tax at source on the income/profit component in the payments received by the distr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)/201(1A) of Income Tax-Act, 1961 (hereinafter referred to as the Act ) for F.Y. 2012-13/2013-14. 2. Brief facts of case are that assessee is engaged in business of providing cellular mobile telephone services in the state of New Delhi (Delhi Circle). A survey under section 133A of the Income Tax Act was carried out on 17.01.2011 to verify as to whether idea Cellular Ltd. does discharge the TDS l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me to time. The case was discussed with them. 3. The computation of the assessee company for liability under the provisions of TDS compliance u/s 201(1)/201(1A) is computed as under- Issue TDS liability u/s 201(1) of the Act Interest liability u/s 201(1A) of the Act Total Failure to deduct tax u/s 194H of the Act as discussed in para 2 above 5,80,43,007 1,77,07,041 7,57,50,048 TOTAL 5,80,43,007 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Learned CIT(A) erred in upholding TDS officer levying interest under section 201(1A) on the ground that appellant has not deducted tax under section 194H. Hon ble Supreme Court of India in the case of Bharti Cellular Limited vs ACIT has held as under:- 42. In view of the aforesaid discussion, we hold that the assessee s would not be under a legal obligation to deduct tax at source on the income/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that assessee would not be under a legal obligation to deduct tax at source on the income/profit component in the payments received by the distributors/franchisees from the third parties/customers, or while selling/transferring the pre-paid coupons or starter-kits to the distributors. Section 194-H of the Act is not applicable to the facts and circumstances of this case. In view of the above mat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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