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Case Law Details

Case Name : CIT Vs ABP Private Limited (Calcutta High Court)
Appeal Number : ITA/458/2008
Date of Judgement/Order : 20/03/2023
Related Assessment Year :
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CIT Vs ABP Private Limited (Calcutta High Court)

Calcutta High Court held that TDS u/s 194H is not deductible on trade discounts given by the newspaper companies to Indian Newspaper Society (INS) accredited Advertising Agents.

Facts- The substantial question involved in the present writ is that Whether the Income Tax Appellate Tribunal was justified in law in holding that trade discount allowed by the assessee to INS accredited Advertising Agent was not in the nature of Commission and therefore not subjected to TDS under the provision of Section 194H of the Income Tax Act.

Conclusion- Hon’ble Bombay High Court in the case of Principal Commissioner of Income Tax Vs. Dempo Industries (P.) Ltd. held that the trade discount given by the assessee, engaged in business of publishing and selling newspaper, to newspaper vendors and advertising agencies was not in the nature of commission and no TDS was to be deducted under Section 194H on same.

In terms of the Circular No.5 of 2016 dated 29th February 2016, it has been clarified by the Board that no TDS is attracted on payments made by television channels/newspaper companies to the advertising agency for booking or procuring of or canvassing for advertisements.

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