Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 488 - ITAT MUMBAINon-deduction of tax at source u/s.194J - non deduction of tds on amount paid on account of internet charges - Held that:- ITAT in the case of M/s Kotak Securities Ltd. (2012 (2) TMI 77 - ITAT MUMBAI ), wherein it was held that no TDS is required to be deducted in respect of bank guarantee charges paid to bank, accordingly assessee cannot be said to be in default for such non-deduction of TDS on such payment. Facts of the instant appeals are similar, respectfully, following the order(supra), we do not find any infirmity in the order of CIT(A) holding that assessee is not in default for non-deduction of TDS on such payments. Non-deduction of tax at source u/s.194H - default in respect of payment of bank guarantee charges - Held that:- The Mumbai Bench of Tribunal in the case of Kotak Securities Ltd. vs. DCIT, (supra) has held that bank guarantee charges are not liable for deduction of tax under section 194H on the ground that such transactions are on principal to principal basis and the element of agency which is essential to cover it as 'commission' as per Explanation to section 194H is absent. Appeal of the Revenue is dismissed whereas appeal of the Assessee is allowed.
|