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2017 (11) TMI 1618 - ITAT DELHINon-deduction of tax at source on guarantee commission paid to bank – TDS u/s 194H – principal and agent relation - Held that:- As decided in the case of Kotak Securities Limited v. DCIT [2012 (2) TMI 77 - ITAT MUMBAI] Principal agent relationship is a sine qua non for invoking the provisions of Section 194H. While it is termed as 'guarantee commission', it is not in the nature of 'commission' as it is understood in common business parlance and in the context of the section 194H. This transaction, in our considered view, is not a transaction between principal and agent so as to attract the tax deduction requirements u/s 194H. - Decided in favour of assessee. Disallowance u/s 14A - Held that:- The assessee had not earned any exempt income during the year and as such no expenditure could be said to have been incurred to earn the exempt income. It is settled law that if there is no exempt income, no disallowance u/s 14A can be made. See CIT vs. Holcim India Pvt. Ltd [2014 (9) TMI 434 - DELHI HIGH COURT]- Decided in favour of assessee.
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