ITAT Chennai: Payments to Fertilizer Dealers Classified as Rebates, Exempt from TDS

Greenstar Fertilizers Limited Vs ACIT (ITAT Chennai) Introduction: In a landmark ruling, the Income Tax Appellate Tribunal (ITAT) Chennai adjudicated that payments made to dealers by Greenstar Fertilizers Limited for the sale of fertilizers are in the nature of rebates and hence do not require the deduction of tax at source (TDS) under section 194H of the Income Tax Act. Analysis: The ruling was a culmination of two appeals for Assessment Years 2018-19 and 2019-20, where the revenue authorities demanded TDS on payments made to dealers. The ITAT examined the nature of transactions between Green...