Case Law Details
Mahindra & Mahindra Ltd. Vs DCIT (ITAT Mumbai)
Payments made by the assessee to its dealers for providing free services in lieu of service coupons is not in the nature of any reimbursement of expenditure incurred by such dealers, and is in fact in the nature of payment of consideration pursuant to a contract, as per which the dealer provides such services to the ultimate customers. Accordingly, in our considered view the assessee was obligated to have deducted tax at source at the time of making of such payments towards service coupons to its dealers.
FULL TEXT OF THE ITAT JUDGEMENT
The present appeal filed by the assessee is directed against the order passed by the CIT(A)-5, Mumbai, dated 06.10.2016 which in turn arises from the order passed by the A.O under Sec.143(3) r.w.s 254 of the Income Tax Act, 1961 (for short ‘I-T Act’), dated 31.03.2014 for A.Y. 2007-08. The assessee has assailed before us the order passed by the CIT(A) on the following grounds of appeal :
“Being aggrieved by the order passed by the Commissioner of Income-Tax (Appeals) 5, Mumbai [hereinafter referred to as ‘CIT(A)’], the appellant submits following grounds of appeal for your sympathetic consideration :
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