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2020 (1) TMI 77 - AT - Income TaxTDS u/s 194H - allowability of the bank guarantee commission - addition under section 40(a)(ia) - HELD THAT:- Since the issue is no longer res Integra and has squarely been covered in assessee’s own case for the earlier year by the orders of the Tribunal, while respectfully following the same we reach the conclusion that in the absence of any principal agent relationship between the bank issuing bank guarantee and the assessee, the transaction between them is not transaction between the principal and agent so as to attract the tax deduction under section 194H of the Act, and the addition made in this case under section 40(a)(ia) of the Act cannot be sustained. We accordingly allow the grounds of appeal, and direct the assessing officer to delete the addition - Decided in favour of assessee.
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