Supreme Court of India

Bharti Cellular Limited (now Bharti Airtel Limited) v. Assistant Commissioner of Income Tax, Circle 57, Kolkata and Another

Neutral citation

Reported as [2024] 2 S.C.R. 1001

Bench Sanjiv Khanna and S.V.N. Bhatti JJ.

Decided 28 February 2024

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

2 Supreme Court benches have cited this judgment.

What the Court ordered

We hold that the assessees would not be under a legal obligation to deduct tax at source on the income/profit component in the payments received by the distributors/franchisees from the third parties/customers, or while selling/transferring the pre-paid coupons or starter-kits to the distributors.

Judgment, page 38

From the headnote

Issue for Consideration The liability to deduct tax at source u/s.194- , Income Tax Act, 1961 on the amount which, as per the Revenue, is a commission payable to an agent by the assessees-cellular mobile telephone service providers under the franchise/distributorship agreement between the assessees and the franchisees/distributors. Headnotes Income Tax Act, 1961 – s.194- – When not attracted – Assessees entered into franchise or distribution agreements and sold start-up kits, recharge vouchers at a discounted price to the franchisee/distributors – As per Revenue, the difference between

Authorities it was built on

1977 Bhopal Sugar Industries Ltd. v. Sales Tax Officer, Bhopal cited by 3
2018 The Director, Prasar Bharati v. Commissioner of Income Tax, Thiruvanthapuram cited by 2
2022 Singapore Airlines Ltd. v. C.I.T., Delhi cited by 2
2022 Securities and Exchange Board of India v. Sunil Krishna Khaitan and Others cited by 1

Where later benches applied it

2026 Ht Media Limited v. Principal Commissioner Delhi South Goods and Service Tax referred to
2025 Union of India & Others v. Future Gaming Solutions Pvt. Ltd. & Another Etc. referred to

Of those, 2 referred to

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