Let us first clarify what does Section 194C and 194H States:
Section 194C deals with Tax deducted at source in a case payment is made when there is a contract. Income tax Act ,1961 does not define ‘Contract’.
Section 194H deals with Tax deducted at source in case payment of Brokerage or Commission is made. Income tax Act,1961 has defined Brokerage or Commission as ‘It includes any payment received or receivable by person acting on behalf for service rendered’.
In the above case A Ltd is stating that the charges which they receive are in the form of Brokerage. To Contract to exist there should be mutual consent between the party. As Mutual consent does not exist, A Ltd cannot charge 194C, as A Ltd is acting on behalf of B Ltd to book tickets, it can be rightly considered as Brokerage and TDS u/s 194H is to be deducted.
Hence, the statement made by A Ltd holds valid.