Pigmy commission treatment as salary vis-à-vis TDS u/s 192 needs re-verification

Shri Basaveswar Credit Co-op Society Ltd Vs ITO (ITAT Bangalore) ITAT Bangalore held that the pigmy commission will be treated as a salary and subject to the TDS under section 192 of the Act. Accordingly, matter remanded for verification. Facts- AO observed that the assessee has debited Rs. 1.00/- lakh towards audit fee and pigmy commission of Rs.5,68,149/- to pigmy agents paid during the year and no tax had been deduction at source as per Chapter XVII – B. Accordingly, he disallowed as per the provisions of section 40(a)(ia) of the Act and added back to the total income of the assessee. CIT...