Case Law Details
Dickson Electronics Vs ITO (ITAT Amritsar)
It is seen, that the judicial view of the various High Courts is divergent regarding the deductibility or otherwise of tax on discount allowed to distributor on sale of prepaid Sim Card. However, there is no decision by the Hon’ble Jurisdictional High Court, either way. That being so, all the cases having been taken into consideration and distinguished therein and the matter having decided in favour of assesse, respectfully following ‘Bharti Air tel Limited (supra), we hold, in accordance therewith, that no tax was liable on the discount allowed by BSNL to its distributors on sale of prepaid sim card and that that being so, no question of levy of any interest under section 201(1A) of the Act arises.
FULL TEXT OF THE ORDER OF ITAT AMRITSAR
The instant appeal is directed against the order of Ld. Commissioner of Income Tax (Appeal)-2, Jalandhar, {in brevity CIT(A)} bearing appeal no. 179/16-17/CIT(A)-2/Jal date of order 15.11.2017, order passed u/s. 250(6) of the Income Tax Act, 1961 (in brevity of the Act) for the Assessment year 2013-14. The impugned order was generated from the order of Income Tax Officer, Ward-3(1) Srinagar KMR (in brevity A.O) order passed u/s.143(3) of the Act date of order 19.03.2016.
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