TMI Blog2014 (3) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... TAT MUMBAI] Principal agent relationship is a sine qua non for invoking the provisions of Section 194 H. While it is termed as 'guarantee commission', it is not in the nature of 'commission' as it is understood in common business parlance and in the context of the section 194H. This transaction, in our considered view, is not a transaction between principal and agent so as to attract the tax deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ider that the services rendered by the banking authority in the said guarantee executed with the assessee are covered under the provisions of section 194H of the Act. d. The ld. CIT(A) erred in deleting the addition stating that there is no principal agent relationship since the provisions of section 194H of the Income Tax Act does not speak with such relationship. 2. After hearing rival co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission , it is not in the nature of `commission as it is understood in common business parlance and in the context of the s.194H. This transaction, is not a transaction between principal and agent so as to attract the tax deduction requirements under s.194H. CIT(A) indeed erred in holding that the assessee was indeed under an obligation to deduct tax at source under s. 194H from payments made by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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