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2015 (6) TMI 1095 - AT - Income TaxTDS u/s 194H - non deduction of tds on payments of bank guarantee commission made to the bank - principal agent relationship - interest u/s 201(1A) - Held that:- TDS was not required to be deducted under section 194H, therefore, levy of interest under section 201(1A) was not in accordance with law. Since no contrary decision was brought to our notice, respectfully following the said decision of Tribunal in the case of Kotak Securities Ltd.(2012 (2) TMI 77 - ITAT MUMBAI )wherein held when bank issues bank guarantee on behalf of assessee, there is no principal agent relationship between bank and assessee and, therefore, assesee is not required to deduct tax at source under section 194H from payments of bank guarantee commission made to the bank, we decline to interfere in the relief granted by Ld. CIT(A). - Decided in favour of assessee.
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