TMI Blog2016 (4) TMI 1165X X X X Extracts X X X X X X X X Extracts X X X X ..... our of assessee TDS u/s 194H - Bank guarantee charges paid to the bank - tds liability - Held that:- The Mumbai Bench of Tribunal in the case of Kotak Securities Ltd. vs. DCIT, (2012 (2) TMI 77 - ITAT MUMBAI ) has held that bank guarantee charges are not liable for deduction of tax under section 194H on the ground that such transactions are on principal to principal basis and the element of agency which is essential to cover it as 'commission' as per Explanation to section 194H is absent.- Decided in favour of assessee - ITA No. 4884/MUM/2014 - - - Dated:- 29-4-2016 - <!--[if gte mso 9]> <![endif]--> <!--[if gte mso 9]> Normal 0 false false false EN-US ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... <![endif]--><!--[if gte mso 10]> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; mso-bidi-font-size:10.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8, has decided the issue in favour of the Department. 3. On the facts and circumstances of the case and in law, the CIT(A) erred in allowing the appeal of the assessee on the basis of reasoning that bank guarantee charges are not in the nature of commission and no TDS was required to be deducted on such charges paid to banks u/s 194H of the I.T. Act, 1961, ignoring the fact bank guarantee charges fall within the ambit of Explanation (i) to section 194H of the Act 3. In so far as the Grounds of appeal No.1 2 are concerned, they relate to the stand of the Revenue that tax was required to be deducted at source on payments made for internet charges because of the provisions of section 194J of the Act. As per the Revenue, payments ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the decision of the another CIT(Appeals) -14, Mumbai dated 15/10/2013(supra) on a similar issue, which has been accepted by the Revenue inasmuch as no appeal on the point has been preferred before the Tribunal, though on other issues the Department came in appeal before the Tribunal in ITA No.7630/Mum/2013(supra). On this count itself, the Grounds of appeal No. 1 2 raised by the Revenue are liable to be dismissed. Even otherwise, the ratio of the judgment of the Madras High Court in the case of Skycell Communications Ltd.(supra) supports the stand of the CIT(Appeals) that payments made to obtain internet facility from BSNL would not be covered within the meaning of 'fee for technical services' so as to be liable for deduction of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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