Section 194H of the Income Tax Act, 1961 — TDS — Tribunal was justified in holding that the provisions of Section 194H was not applicable on discounts given by the assessee to the distributors of prepaid SIM cards.[2020] 53 ITCD 066 (BOM)
Facts: Being aggrieved of the order of Tribunal, revenue went on appeal before High Court and raised the question of law that "a) Whether on the facts and in the circumstances of the case and in law, Hon'ble ITAT was justified in holding that TDS provisions under section 194H of the Income Tax Act, 1961 are not attracted on discounts given by the assessee to the distributors of prepaid SIM cards ?  and
b) Whether on the facts and in the circumstances of the case and in law, Hon'ble ITAT erred in setting aside the case of the AO?"
Held, that Tribunal was justified in holding that the provisions of Section 194H  was not applicable on discounts given by the assessee to the distributors of prepaid SIM cards. Thus upon thorough consideration of the mater, we do not find any error or infirmity in the view taken by the Tribunal. No substantial question of law arises therefrom.