Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 1116 - AT - Income TaxNon-deduction of tax at source on guarantee commission paid to bank – Revenue contended that tax to be withhold 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 194 H. 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.
|