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Hindustan Coca-Cola Beverages (P) Ltd. vs Ito, Tds Range-7 on 13 July, 2005

3.1. In response, the assessee replied that they did not deduct tax at source from payment to dealers since it depended upon and nature of incentives and transactions were principal to principal and that they deducted tax at source only on payment to Retail Sales Personnel (RSP). The assessee pleaded that since the automobile industry was highly competitive, various discounts and incentives given to the dealers on a month to month basis through the retailer bulletins were debited to the P&L Account under the head ' Incentive to dealers' and TDS provisions were not applicable to dealers' incentive, being not commission. However, the AO did not accept the submissions of the assessee on the ground that incentive was paid to the dealers post invoice i.e. after the sale of the vehicle to the dealer and was not part of the profit margin of the dealer but was attributable to increased sale made by the dealer and therefore, the 2 ITA nos.2068 & 2069/Ahd/2010 payment was nothing but commission to the dealers and hence the provisions of section 194-H were attracted. Besides, while referring to decisions in Kerala State Stamp Vendors Association. vs Office Of The Accountant-general And Others, 282 ITR 7(Kerala) and M/s Hindustan Coca-cola Beverages (P) Ltd. vs. ITO, 97 ITD 105 and after analyzing the monthwise breakup of incentive / discount to dealers / employees of dealers in the light of documents relating to incentives furnished by the assessee and referred to in his order , the AO concluded that the assessee hired vehicles for transporting their employees and thus, the provisions of sec. 194I were applicable to such payments and that the provisions of sc. 194C were not applicable. Accordingly, the AO determined liability for tax u/s 201(1) of the Act to the extent of Rs.2,96,50,035/-by applying the provisions of sec. 194H of the Act on the amount of commission/incentives for the FY 2008-09 and consequent interest of Rs.22,65,824/- u/s 201(1A) of the Act. Like wise for the FY 2007- 08, interest of Rs. 29,87,995/- u/s 201(1A) was levied while holding that demand for tax u/s 201(1)[ Rs.5,31,99,162/-] has not been raised in view of CBDT circular F No. 276/201/96-IT(B) dated 21.9.1997. Moreover, liability for tax required to be deducted at source for hiring of vehicles in terms of provisions of sec. 194I was determined at Rs.12,29,927/- for Pune and Rs.19,34,438/- for Halol, resulting in total liability of Rs.39,55,455/-.After reducing the amount of tax deducted at source-Rs.7,91,090/- u/s 194C of the Act, net demand of Rs.31,64,365/- was raised besides consequent interest of u/s 201(1A) of Rs.2,31,990/-.
Income Tax Appellate Tribunal - Jaipur Cites 16 - Cited by 7 - Full Document

Income-Tax Officer vs Smt. Gurinder Kaur on 16 June, 2006

7. As regards plea of the ld. AR on behalf of the assessee, seeking similar directions for the FY 2008-09[AY 2009-10] as have been issued by the ld. CIT(A) for the FY 2007-08[AY 2008-09] in respect of recovery of tax in view of CBDT circular no.276/201/96-IT(B) dated 29.1.1997, the ld. AR relied upon rule 27 of the ITAT Rules,1963 and cited the decisions in ITO Vs. Smt. Gurinder Kaur,102 ITD 189(Delhi), Hindustan Coca-cola Beverages (P.) Limited. vs Commissioner Of Income-Tax293 ITR 226(SC) and Mahindra And Mahindra Limited. vs Deputy Commissioner Of Income-Tax.313 ITR(AT) 263(Mumbai). The ld. DR vehemently opposed the aforesaid plea of the ld. AR on the ground that Rule 27 of the ITAT Rules,1963 is not applicable in the instant case since no such plea was taken before the ld. CIT(A) or the AO in the proceedings for the FY 2008-09[AY 2009-10] nor the relevant facts emerge from the impugned orders.
Income Tax Appellate Tribunal - Delhi Cites 31 - Cited by 51 - Full Document
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