Case Law Details
Ketan Sahebrao Purkar Vs ITO (ITAT Pune)
The issue involved in the present appeal is whether on the facts and circumstances of the case, the appellant is liable to deduct tax at source u/s 194H in respect of expenditure claimed to have been debited to Profit & Loss Account under head “commission”. Without delving into the issue whether relationship between the appellant and the recipient of the commission is in the nature of principal to principal, the material facts to be noted is that the appellant had received sale proceeds net of the expenditure like transport, labour, adat, loading and unloading charges etc.. In other words, the appellant neither paid nor credited such income to the account of the payee. In an identical facts, the Hon’ble Jurisdictional High Court in the case of Super Religare Laboratories Ltd. (supra) held that there is no obligation to deduct tax at source u/s 194H of the Act.
Keeping in view of the above decision of the Hon’ble Jurisdictional High Court (supra), ITAT hold that the assessee is not under obligation to deduct TDS in such commission expenditure.
FULL TEXT OF THE ORDER OF ITAT PUNE
This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)- 12, Pune [‘the CIT(A)’] dated 07.03.2022 for the assessment year 2012-13.
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