S. 194H: TDS Defaulter is liable only for interest & penalty & not the tax

Jagran Prakashan Ltd vs. DCIT (TDS) (Allahabad High Court)

 

The assessee, a publisher of newspapers, gave 10-15% trade discount to advertising agencies as per rules of the Indian Newspaper Society. The AO held that the said discount constituted “commission” and that the assessee ought to have deducted TDS u/s 194H and was liable as assessee-in-default u/s 201. The assessee filed a Writ Petition to challenge the said order. HELD by the High Court: