No penalty for non deduction of TDS on sale of SIM Cards/recharge coupons at discounted rate

Tribunal held that sale of SIM Cards/recharge coupons at discounted rate to distributors is not commission and therefore, not liable to TDS provisions u/s. 194H of the Act. Once, the substratum for levy of penalty has eroded there is no question for sustaining the penalty. The penalty u/s. 271C has been levied in respect of violation of provisions of section 194H of the Act. Additions were made in the hands of assessee u/ s. 201(1) and 201(1A) of the Act on account of alleged non-deduction of tax at source on the payment of commission to distributors. The quantum addition travelled up to the T...