TMI Blog2011 (1) TMI 1427X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Act, 1961. 2. Briefly, the material facts are as follows. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has claimed a deduction of ₹ 2,87,409 in respect of the brokerage paid. The Assessing Officer noted that the assessee has not deducted tax at source, as required under section 194H, from these payments. Accordingly, the Assessing Officer invoked section 40(a)(ia) to disallow the payments so made by the assesse. Aggrieved, assessee carried the matter in appeal but without any success. In appeal, it was pointed out that the brokerage on sale of securities is not covered by tax withholding requirements under section 194 H, but the CIT(A) rejected the said plea on the ground th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such commission or brokerage is credited or paid, shall be liable to deduct income-tax under this section Explanation.-For the purposes of this section,- (i) commission or brokerage includes any payment received or receivable directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to see any merits in the stand taken by the CIT(A) and the objection of the CIT(A) is clearly devoid of any legally sustainable merits. We reject the same. Learned Departmental Representative, however, has an interesting point to make. She submits that definition of commission or brokerage , under Explanation (i) to Section 194 H, has three parts first, relating to services rendered by one person on behalf of another ; second- services rendered in connection with purchase or sale; and, third transaction of sales of any asset etc other than securities. She contends that it is only when third part of this definition is invoked that there will be any relevance of definition of securities , but since services rendered by the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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