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TMI Blog2016 (1) TMI 1279X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 deduction requirements u/s 194H. See case of M/s. Kotak Securities Ltd. [2012 (2) TMI 77 - ITAT MUMBAI ] - Decided in favour of assessee - ITA No. 3920/Mum/2014 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucted on such charges paid to bank u/s. 194H of the I.T. Act, 1961. ii. On the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in deleting the interest u/s 201(IA) of the IT Act, 1961, determined by the AO as the tax determined has already been deleted by her on the bank guarantee commission and interest delet ion is consequential to the quantum deletion fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 194H on the payment made by the assessee to the bank on account of guarantee commission charges. 3.2. On the other hand, Ld. DR has relied upon the order of AO. 3.3. We have heard both the parties and gone through the cases relied upon before us. It is noted that Hon ble coordinate bench in the case of M/s. Kotak Securities Ltd., (supra) has held as under: In the case before us, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee was indeed under obligation to deduct tax at source u/s 194H from payments made by the assessee to various banks. As we have held that the assessee was not required to deduct tax at source u/s 194H, the question of levy of interest u/s 201(1A) cannot arise. In view of the above discussion, we quash the impugned demands u/s 201(1) and 201(1A) r.w.s. 194H. We therefore, also see no need t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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