Bharti Cellular Ltd.Now Bharti Airtel ... vs Assistant C.I.T Circle 57

The Supreme Court addressed the applicability of Section 194-H of the Income Tax Act, 1961, concerning the obligation to deduct tax at source on payments made by cellular mobile service providers to franchisees/distributors. The Court held that the assessees were liable to deduct tax at source under Section 194-H, affirming the decisions of the High Courts of Delhi and Calcutta, while distinguishing the rulings from Rajasthan, Karnataka, and Bombay. The judgment clarified the definition of 'person responsible for paying' under Section 204 of the Act, emphasizing the tax deduction obligation on commission payments.