2016 (4) TMI 1165

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..... it is a payment for obtaining a standard facility and not for technical services. - Decided in favour 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
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..... ;On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in holding that internet charges are paid for regular services and are not in the nature of technical services and no TDS is required to be deducted, thereby deleting the addition made on account of internet charges without appreciating that the Hon'ble Hyderabad ITAT in the case of Brigade Global Services(P) Ltd. 2013) 33 Taxman. Com 618, 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 charge .....

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..... /2013 dated 04/06/2015, wherein order of the CIT(Appeals)-14 dated 15/10/2013(supra) is assailed, which shows that the Revenue did not agitate the decision of the CIT(Appeals) in relation to the requirement of TDS on payment made for internet charges. 5. The aforesaid factual matrix has not been disputed by the Ld. Departmental Representative. It is quite evident from record that in the instant case the CIT(Appeals) has followed 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). .....

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