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2016 (3) TMI 963 - AT - Income TaxReimbursement of bank guarantee commission - TDS u/s.194A @10% OR u/s.194C @2% - revision u/s 263 - Held that:- In the instant case, there is no money borrowed or debt incurred. Therefore, provisions of sec. 2(28A) and sec. 194A do not apply. Payment made to NCL is not "income by way of interest". The impugned receipt would be in the nature of reimbursement of expenses incurred by it. In view of the above discussion, we do not find any merit in the order passed u/s.263 in respect of one of the possible view taken by the AO. Even on merit, we found that bank guarantee commission does not come under the purview of interest so as to make assessee liable for TDS u/s.194A. - Decided in favour of assessee
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