Golden Harvest Scheme Discount ≠ Interest; No TDS U/s 194A, 201 Default Quashed

Motor & General Sales Ltd Vs ITO (TDS)-II (ITAT Lucknow) Golden Harvest Scheme Discount ≠ Interest; No TDS u/s 194A, 201 Default Quashed The ITAT, Lucknow Bench, held that discount/compensation given to customers under the Golden Harvest Scheme (GHS) is not “interest”, and therefore no TDS is deductible u/s 194A. Consequently, the assessee—a franchise agent of Tanishq (Titan Industries Ltd.)—cannot be treated as assessee-in-default u/s 201(1)/(1A). In this case (AY 2012-13), customers deposited monthly instalments for 11 months towards purchase of jewellery, and at the time of pu...